NSE To Earn N5 On N1m Bond
The Nigerian Stock Exchange (NSE) will from today earn N5 on every N1 million worth of transactions at its fixed-income securities market. Under the new cost structure that takes effect today, the NSE will charge a fee of 0.0005 per cent on every debt instrument traded on its platform.
The revised cost structure came on the heels of the expiration of the four-year moratorium granted by the NSE on debt securities trading. As part of its liquidity-enhancing efforts, the NSE had introduced a trading fee moratorium on fixed-income securities trading in August 2016.
The NSE at the weekend stated that it had received regulatory approval of the Securities and Exchange Commission (SEC) to revise its fee structure. The revised fee of 0.0005 per cent on any sale or buy transaction at the debt market becomes effective on October 05, 2020.
According to the Exchange, the revision was in line with its ambition to support Nigeria’s economic growth by providing a liquid, efficient and multi-asset securities exchange hub.
“The NSE offers a hybrid market for the execution of quote and order-driven transactions providing dealers as well as institutional and retail investors access to increased liquidity in fixed income securities. By leveraging best in class market design and infrastructure, the NSE trading venue provides investors integrated straight-through trading and post-trade process that supports efficient execution without any trade failures across all asset classes including fixed income securities,” NSE stated.
The Exchange noted that investors trading through its platform also enjoy access to diverse listed debt instruments including federal government, state government, corporates, supranational and retail savings bonds.
The Exchange stated that it has continued 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,” NSE stated.
