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The Nigerian Stock Exchange (NSE or “The Exchange”) has announced the revision of the listing and trading fees for securities listed and traded on its Fixed Income Market. The revised fee structure which is effective August 17, 2016, will be piloted for an initial six month period, and then evaluated to determine if it has met its objectives.
Under the revised fee structure, the NSE will no longer charge trading fees on fixed income traded on its platform. The initial flat listing application fees of 0.15% for all bond types has been replaced with variable listing application fees. With this, Corporate Bonds exclusively listed on the NSE, with existing equity listing, will attract 0.01% listing application fee. Dual listed Corporate Bonds with existing equity listing and other Corporate Bonds will attract 0.0375% listing application fees. Similarly, the listing application fees for State and Supranational Bonds has been reduced to 0.05%.
The Exchange also replaced the fixed Brokerage Commission of 0.0005% with a negotiable rate capped at 1%. This will enable investors negotiate trading commission with brokerage firms, thus driving competition and best execution.
The table below shows the changes in the listing and trading fees in the NSE fixed income market.
|
Fees |
Current |
New Fee |
|
|
Trading Fees |
0.0001% |
No charge |
|
|
Brokerage Commission |
0.0005% |
As negotiated with a cap of 1% |
|
|
Listing Application Fees |
0.15% |
Corporate Bonds (exclusively listed on NSE) with existing Equity Listing: 0.01% Corporate Bonds (Dual listing) with existing Equity Listing: 0.0375% Other Corporate Bonds: 0.0375% State & Supranational Bonds: 0.05% |
|
|
Annual Listing Fees
|
Unchanged |
Speaking on this development, the Executive Director, Capital Markets, NSE, Mr. Haruna Jalo-Waziri, noted that the fee reduction in the NSE fixed income market is 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 recognized 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”.
Mr. Jalo-Waziri described the investment opportunities in the Nigerian capital market as huge, urging issuers to raise cheap long term capital through bond issuance for business expansion, project finance, loan refinancing etc., and investors to be more active in the bonds segment.
“NSE remains committed to building an enduring marketplace and will continue to pursue initiatives that add value to issuers and investors”, he added.
