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NSE reduces debt market’s fees



The Nigerian Stock Exchange (NSE) has reviewed downward the listing and trading fees for securities listed and traded on the debt segment of its market.

The revised fee structure will become effective on August 17, 2016 and will run for six months under a pilot scheme designed to evaluate the effectiveness of the new feed structure.

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 per cent for all bond types have been replaced with variable listing application fees.

With this, corporate bonds exclusively listed on the NSE, with existing equity listing, will attract 0.01 per cent listing application fee. Dual listed corporate bonds with existing equity listing and other corporate bonds will attract 0.0375 per cent listing application fees.

Similarly, the listing application fees for State and Supranational bonds have been reduced to 0.05 per cent.

Read also: SEC to cancel dividend warrant by June 2017

The Exchange also replaced the fixed Brokerage Commission of 0.0005 per cent with a negotiable rate capped at 1.0 per cent. This will enable investors negotiate trading commission with brokerage firms, thus driving competition and best execution.

Speaking on this development, Executive Director, Capital Markets, Nigerian Stock Exchange (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,” Jalo-Waziri said.

Mr. Jalo-Waziri urged investors to be more active in the bond market pointing out that Nigeria has huge opportunities in various segments that require cheap long term capital through bond issuance for business expansion.

“NSE remains committed to building an enduring marketplace and will continue to pursue initiatives that add value to issuers and investors”, Jalo-Waziri said.



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