NSE reviews listing, trading fees for fixed income securities

The Nigerian Stock Exchange (NSE) on Thursday announced the revision of the listing and trading fees for securities listed and traded on its Fixed Income Market.

This is contained in a statement issued by the NSE, in Lagos south west Nigeria . The statement said the revised fee structure which was effective Aug. 17 would be piloted for an initial six-month period.

It said the fee would be evaluated to determine if it had met the objectives after six months. “Under the structure, the NSE will no longer charge trading fees on fixed income traded on its platform. “The initial flat listing application fee of 0.15 per cent for all bond types has been replaced with a variable listing application fee,’’ the statement said.

According to the statement, under the new arrangement, corporate bonds exclusively listed on the NSE with existing equity listing will attract 0.01 per cent listing application fee.

It further said dual listed corporate bonds with existing equity listing and other corporate bonds would attract 0.0375 per cent listing application fee.

According to the statement, the listing application fee for State and supra-national bonds have been reduced to 0.05 per cent.

The statement said it also replaced the fixed brokerage commission of 0.0005 per cent with a negotiable rate capped at one per cent.

It said this would enable investors negotiate their trading commission with brokerage firms, thereby driving competition and best execution.

The statement quoted the NSE Executive Director (Capital Markets), Mr Haruna Jalo-Waziri, as saying “the fee reduction is in line with the exchange’s commitment to boost market efficiency’’.

Jalo-Waziri said the reduction in the listing application fees would give issuers the opportunity to raise their profile and increase visibility. “The aim is to reduce issuers cost of accessing long term capital and to provide investors with diverse investment products at competitive trading fees,” he said.

Jalo-Waziri, who described the investment opportunities in the Nigerian capital market as huge, urged issuers to raise cheap long-term capital through bond issuance for business expansion, project finance and loan refinancing.

“The NSE remains committed to building an enduring market place and will continue to pursue initiatives that add value to issuers and investors,” he added.