- GPW has extended the reduction of fees for Market Makers of shares outside the WIG20 index for the period from 1 October 2016 to 31 March 2017;
- The fee reduction is designed to improve trade liquidity in shares of companies not in the WIG20 index and to support local brokers;
- The extension of the fee reduction is part of a strategy aimed at activating investors by means of a flexible pricing policy tailored to the needs of different groups of GPW clients
The Warsaw Stock Exchange has extended its reduction of fees for Market Makers, i.e., a temporary waiver of fees for transactions on the regulated market charged to Market Makers of shares of companies outside of the WIG20 index. The fee reduction is designed to improve the liquidity of shares and to support local brokers (market makers of non-WIG20 companies are mainly local brokers).
Fees on transactions executed by Exchange Members – Market Makers in shares of companies not in the WIG20 index, i.e., small and mid-cap stocks on the GPW Main Market, are equal to PLN 0.00 during the period from 1 July 2015 to 30 September 2016.
Comparing the period from July 2015 to August 2016 with the same period before the fee reduction, it can be noted:
- The turnover in mWIG40 shares increased by 18.5%;
- The turnover by Market Makers in mWIG40 shares increased by 162%;
- The turnover in sWIG80 shares decreased by 5.5%;
- The turnover by Market Makers in sWIG80 shares increased by 48%.
These figures clearly suggest the fee reduction has led to a sharp increase in turnover by market makers in the small and mid-cap stock segment, where liquidity improvement is key to building investor interest in such shares.
The extension of the fee reduction comes in response to positive reception of the promotion among brokers who are market makers of small and mid-cap stocks. GPW’s initiatives follow earlier announcements and align with the long-term strategy of the Company’s fee policy aimed at activating investors, among other actions, by means of pricing incentives.
“The fees charged to our clients are one of the key factors which make the market attractive. To address the expectations of local brokers, the GPW Management Board has decided to extend the fee reduction for market makers of non-WIG20 shares. The extension of the promotion confirms GPW’s strategy of encouraging investor activity in those segments where fees can help increase the trade value as well as liquidity,” said Professor Małgorzata Zaleska, President of the Warsaw Stock Exchange.
In order to improve liquidity, GPW introduced important modifications to its price list in H1 2016:
- The fee on the most popular GPW orders (below order value of PLN 100,000), was reduced from 0.033% to 0.029%;
- The volume-based fee reduction was extended for the most active market makers of WIG20 index futures; depending on monthly turnover, market makers pay as low as PLN 0.40 per contract;
- A new optional Maker/Taker price list was introduced for market makers and participants of the High Volume Provider (HVP) programme.
The fee reduction for Market Makers applies during the period from 1 October 2016 to 31 March 2017.
