NSE Revises Bond Listing and Trading Fees

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

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% for all bond types has been replaced with variable listing application fees. With this, Corporate Bonds exclusively listed on the NSE, with existing equity listing, will attract 0.01% listing application fee. Dual listed Corporate Bonds with existing equity listing and other Corporate Bonds will attract 0.0375% listing application fees. Similarly, the listing application fees for State and Supranational Bonds has been reduced to 0.05%.

The Exchange also replaced the fixed Brokerage Commission of 0.0005% with a negotiable rate capped at 1%. This will enable investors negotiate trading commission with brokerage firms, thus driving competition and best execution.