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NSE revises bond listing, trading fees

By on August 13, 2016

The Nigerian Stock Exchange has modified the listing and trading fees for securities listed and traded on its fixed income market.

The revised fee structure, which will be effective from August 17, 2016, will be piloted for an initial six month period, and then evaluated to determine if it has met its objectives, according to the NSE in a statement.

The Exchange, under the revised fee structure, said it would no longer charge trading fees on fixed income traded on its platform. The initial flat listing application fee of 0.15 per cent for all bond types had been replaced with variable listing application fees, it added.

With this development, the NSE said corporate bonds exclusively listed on the Exchange, with existing equity listing, would attract 0.01 per cent listing application fee. Dual listed corporate bonds with existing equity listing and other corporate bonds would attract 0.0375 per cent listing application fees.

Similarly, the listing application fees for state and supranational bonds had been reduced to 0.05 per cent, it added.

The Exchange also replaced the fixed brokerage commission of 0.0005 per cent with a negotiable rate capped at one per cent. This, it noted, would enable investors to negotiate trading commission with brokerage firms, thus driving competition and best execution.

Speaking on the development, the Director, Capital Markets, NSE, Mr. Haruna Jalo-Waziri, noted that the fee reduction in the NSE fixed income market was in line with the Exchange’s commitment to boost market efficiency.

“The reduction in listing application fees gives issuers opportunity to raise their profile and increase visibility through listing on a globally recognised Exchange with the highest regulatory standards. The aim is to reduce issuers cost of accessing long-term capital and to provide investors with diverse investment products at competitive trading fees,” he said.

 

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