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In a move aimed at attracting trading of fixed income securities on its platform, the Nigerian Stock Exchange (NSE) has revised the listing and trading fees for securities listed and traded on its Fixed Income Market.
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 percent 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 percent listing application fee.
Also, dual listed Corporate Bonds with existing equity listing and other Corporate Bonds will attract 0.0375 percent listing application fees.
Similarly, the listing application fees for State and Supranational Bonds have been reduced to 0.05 percent.
The Exchange also replaced the fixed Brokerage Commission of 0.0005 percent with a negotiable rate capped at 1 percent. This will enable investors negotiate trading commission with brokerage firms, thus driving competition and best execution.
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.
Speaking on this development, Haruna Jalo-Waziri, executive director, Capital Markets, NSE, noted that the fee reduction in the NSE fixed income market was 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 recognised 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.
He 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 said.
