The reduction of transaction fees aims at increasing, through reduction of the transactional costs, the attractiveness of investing on the WSE. The changes are subject to approval of the Polish Securities and Exchange Commission.
The transaction fees will be decreased on average:
- by 10% - equity session trading;
- by 10% - block trades;
- by 16% - tender offer and public offer for sale;
- by 6% - other cash market financial instruments (subscription rights, priority rights, investment certificates, index units);
- by 9% - market makers on the cash market.
The reduction of transaction fees for the equity session trading will amount to 10% on average. For transactions up to PLN 100 thousand in value, the fees on value of turnover will be reduced – on average – by approximately 5.4% (minimum fee will increase from PLN 0.8 to PLN 1.00, but at the same time the fee on value of turnover will be reduced by 11%). By 14.6% - on average – will decrease the fees for orders whose value ranges between PLN 100,000 and 2 million (the fee on value of turnover will be reduced by 17%, but at the same time the fee for each order will increase from PLN 8.8 to 10). For detailed information see table 2.
In April the WSE reduced its transaction fees – on average – by 10% for the equity session trading and by 20% - in the case of derivatives. Moreover, a maximum fee of PLN 1,000 was introduced for important orders.
Taking into account the April reduction, the WSE estimates that the 2006 decrease of transaction fees will total 19% in the case of session trading in shares and 20% in the case of trading in futures.
Table 1. Reductions of transaction fees (%)
2000-2006.
|
Reduction of transaction fees |
2000 |
2001 |
2002 |
2003 |
2004 |
2005 |
Jul
2006 |
|
Shares* |
-20.0% |
-13.8% |
-14.5% |
0.0% |
-14.7% |
-13.0% |
-19.0% |
|
Futures |
-30.0% |
0.0% |
-14.3% |
16.7% |
-14.3% |
-16.7% |
-20.0% |
*
Excluding block trades
Source: WSE
Table 2. Change in the fee schedule for cash
market instruments
|
|
Current fee schedule (valid from April 1,
2006) |
New fee schedule (valid from July 1, 2006) |
|
|||
|
Fees |
Fees |
Change in fees |
||||
|
For each order (PLN) |
On value of turnover (%) |
For each order (PLN) |
On value of turnover (%) |
For each order (PLN) |
On value of turnover (%) |
|
|
Shares
– session trading and block trades* Value
of the order (PLN): ·
0-100,000 ·
100,000-2,000,000 ·
over 2,000,000 |
0.8 8.8 528.8 |
0.044% 0.036% 0.010% |
1.0 10.0 410.0 |
0.039% 0.030% 0.010% |
25% 14% -22% |
-11% -17% 0% |
|
|
max
PLN 1,000 |
max
PLN 1,000 |
||||
|
Market
makers: ·
shares of WIG20 companies |
0.2 |
0.0075% |
0.2 |
0.0068% |
0% |
-9% |
|
|
max
PLN 200 |
max
PLN 200 |
|
|
||
|
·
other cash market instruments |
0.1 |
0.0044% |
0.1 |
0.0040% |
0% |
-9% |
|
|
max
PLN 120 |
max
PLN 120 |
|
|
||
|
Tender
offer and public offer for sale Value
of the order (PLN): ·
0-100,000 ·
over 100,000 |
0.8 8.8 |
0.044% 0.036% |
1.0 10.0 |
0.039% 0.030% |
25% 14% |
-11% -17% |
|
Other
cash market financial
instruments |
0.30 |
0.0320% |
0.30 |
0.030%
|
0% |
-6% |
*
The price lists for block trades and for session trading in shares are the same.
If one brokerage house act as both sides of block trade, the fee equals 50% of
the rate stated in the price list.
