NSE Moves To Slash Transaction Costs
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Investors to pay N4.
00 flat fee BEVERLY HILLS, CA, March 17, (THEWILL) - Good times are underway for capital market investors in the country as the Nigerian Stock Exchange (NSE) has commenced the reduction of the cost of its Trade Alert service by about N1.
24 billion naira from this month.
This followed the scrapping of the current charge of 0.
06% of every trade on the exchange and an introduction of an enhanced notification system, X-Alert which will be charged at a flat fee of N4 per transaction.
Speaking on the development, Mr.
Ade Bajomo, Executive Director of Market Operations and Technology at The Stock Exchange noted that the enhanced X-Alert is a service that will allow the investing public know when a transaction has been made on their account.
"Each time investors buy or sell a security, an alert is sent to them via a text message to the recipient's mobile phone or via an e-mail to the recipient's mailbox.
So what that does is to bring real time notification plus transparency to the market at market rates while safeguarding against un-authorised sale or purchase of securities," Bajomo said.
"The big difference for the investing community is that rather than pay 0.
12 percent of every trade round trip, investors will now pay a flat fee of N4.
00.
"Based on 2013 figures, the trade alert charges with the old system amounted to some N1.
25billion; with the improved notification system however, the annual cost of the alerts would be pruned down to N5.
52million based on a N4 flat fee - that is a reduction of N1.
24 billion per annum.
" While throwing more light on the development, the Managing Director of CSCS, Mr.
Kyari Bukar, said enhanced service is delivered in real time to customers.
He also advised that all customers should ensure that their brokers are provided with up to date mobile phone numbers and email accounts to enable the notification system work effectively and provide timely update on all account transactions.
"There are also the added benefits of effective fraud alert in cases of unauthorised transactions on account, reduction in time spent confirming trades and an enhancement of transparency between the trader and its clients," he said.