Modupe Gbadeyanka
By Modupe Gbadeyanka
Trading fees have been reintroduced into the fixed income securities market segment of the Nigerian Stock Exchange (NSE) four years after it was suspended.
Business Post recalls that in a circular dated August 11, 2016, the NSE said it was suspending the 0.0001 per cent trading fees for securities listed and traded on its fixed income market effective August 17, 2016.
“Under the revised fee structure, the NSE will no longer charge trading fees on fixed income traded on its platform,” the circular released at that time had said.
The reason for that action then, according to the exchange, was to give “issuers [the] 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,” this notice had further said.
Last week, the NSE issued another statement, informing the investing community that it would from today, Monday, October 5, 2020, begin to charge trading fees of 0.0005 per cent (N5 per million) for every buy and sell order.
The exchange explained that this was “in line with its ambition to support Nigeria’s economic growth by providing a liquid, efficient and multi-asset securities exchange hub.”
According to the NSE, after the 4-year fixed income securities trading fee moratorium, it secured the approval of the Securities and Exchange Commission (SEC) “to revise its fee structure.”
The exchange has promised to continue to conduct various trainings, workshops and conferences on fixed income securities products to build domestic capacity and enhance financial literacy while encouraging inclusiveness.
“We remain committed to our corporate goal of providing investors and businesses a reliable, efficient and an adaptable exchange hub in Africa, to save and to access capital,” the NSE said.
