All fees will be charged in local currencies: British brokers, for example, will pay just £4.50 per order for global trading, clearing and settlement. After trades are cleared and settled by Jiway, which will also act as the central counterparty, brokers can chose to safekeep their stocks with Jiway or transfer them to their existing custodian or Central Securities Depository accounts.
There will be no annual membership fee or other fixed charges, and Jiway's trade data will be available free of charge.
This dramatic move represents not just a substantial reduction in costs for brokers, but also a large expansion in scope: from a single access point brokers will be able to offer their clients up to 6,000 securities from 8 countries.
Lynton Jones, Chairman of Jiway, said, "Jiway's flat charge of ?7 per transaction will allow brokers to dramatically cut their charges for retail investors. This proposition is unique in Europe today. No other exchange is able to compare with Jiway's pricing structure. No other exchange will be able to make cross-border, Pan-European trading as cheap, easy and fuss-free as Jiway". In addition, Jiway will offer domestic trading, clearing and settlement at attractive prices: ?1.5 per order for any domestic trade.
Jiway also announced a detailed timetable for the launch of the new market: live testing with brokers and market makers will begin this summer and continue through October, and the formal launch will take place in November in UK, Germany and Sweden.
Jiway plans to extend the service to brokers in France, Netherlands, Switzerland and Italy during 2001.
Jiway Holdings Ltd was announced on 8th February 2000. It is a ?100 million project in which Morgan Stanley Dean Witter has a 40% stake, and OM Group of Sweden has a 60% stake. Headquartered in London, Jiway will be an electronic order and quote driven market.
Designated Market Makers will provide liquidity, and facilities will be made available at first to brokers in the UK, Sweden and Germany, and then to Switzerland, Italy and Holland during 2001. Up to 6,000 European and North American shares will be available via its single access point. Jiway Holdings Ltd will operate two complementary businesses: Jiway Ltd., which is applying for RIE status in the U.K., and Jiway Broker Services AB in Sweden. Safekeeping: Jiway will offer global safekeeping for 3 basis points per annum- or 1.5 basis points for domestic safe keeping -- which will include the processing of all mandatory corporate actions (e.g. stock splits and dividends) for the omnibus accounts of its trading parties. Transferring stock out of Jiway will cost ?15 per order for Delivery-vs-Payment and ?6 for Free-of-Payment movements.
