1. Outline
A 10% trading fee reduction for stock and futures products.
However, for KTB futures and other products whose trading fees are relatively higher, a 20% fee cut will be offered for the traded portion of orders placed by customers in consideration of equity issues.
Fees for KOSPI 200 futures and KTB futures will remain in tandem.
Trading fees for KTB futures and other products which were previously listed on the KOFEX are relatively higher than those for KSE-listed products such as KOSPI 200 futures. To reduce the fee gap, the fees for the former will be slashed by 20%.
Any fee reduction is subject to deliberation by the Market Efficiency Committee pursuant to Article 25 of the Korea Securities and Futures Exchange Act. The planned fee cut was in fact deliberated by the committee on July 14, 2004.
Effective Date: July 21, 2005(Thursday); applicable to cleared trades.
2. Effects
Members are expected to improve their finances by around 24 billion won annually.
Following the launch of the merged exchange, the annual fee for special members was abolished, thereby saving members costs of around 20 billion won.
The annual fee is equivalent in amount to the annual interest payment on the capital contribution made by regular members (average 1.0 billion won per company).
The fee cut will most likely benefit investors as well as members, thereby saving on the investors’ transaction costs.
3. Future Plan
The exchange will review the entire trading fee schedule during the second half of this year, and create a rational and efficient fee system that fairly reflects the cost of services rendered and ensures stable market operation.
