BVB reduces trading fees as of October 1

The Bucharest Stock Exchange announces lower trading fees for regulated market, Rasdaq, ATS and Unlisted segment, in line with the strategy of reforming the local capital market by aligning to European standards so as to eliminate the barriers to its further development.

The reduced fees will be effective from October 1, 2014, BVB expecting to generate increasing trading activity of the participants and investors on the stock exchange, explains a press release. The initiative follows the Financial Supervisory Authority (FSA) decisions to reduce the trading fees charged on the buy side for a trade.

“We are continuing our efforts and projects, aimed at the revitalization of the Romanian capital market. Many of these steps, including the improvement when it comes to the cost of access to the market are carried out in cooperation with the FSA and other regulators. This process will be continued”, stated Ludwik Sobolewski, CEO BVB.

Subsequent to this reduction, the new trading fees (sum of FSA fee and BVB fee) will be 0.1 percent, charged for both buy and sell sides, however, the Market Makers will benefit from lower fees.

The standard trading fees to be applied for shares, rights, fund units (Regular and Odd Lot, Rasdaq, ATS, Unlisted) on the buy side will decrease by about 11 percent to 0.4 percent of the transaction value, while the fees on the sell side will be 0.1 percent, some 15 percent lower than the actual level.

Lower fees will apply to participants for ETFs and structured products, as well. The total trading fee will be 0.1 percent on the buy side (FSA fee – 0.06 percent and BVB fee – 0.04 percent) and 0.1 percent on the sell side (BVB fee).

BVB fee on the buy side will be dropped from 0.05 to 0.04 percent, while the fee on the sell side will decrease by almost 17 percent, from 0.12 percent to 0.1 percent.

For all these markets, the trading fees applied for the deal type markets remain unchanged.

Market Makers or Liquidity providers ETFs and structured products will be charged a flat trading fee of 0.06 percent. Also, Market Makers registered for International ATS will get for each buy transaction 0.08 percent and for each sell transaction, same 0.02 percent.

Fee reductions will be applied for bonds and government bonds trading, too. The standard trading fee for bonds will drop from 0.0216 percent to 0.1 percent, irrespective of the side. Except from retail investors, the other participants trading government bonds will be charged lower fees which will apply regardless of the traded value.

Hence, the fee on the buy side will be 0.0004 percent of the traded value, minimum 1 lei and maximum 10 lei/trade.  As for Market Makers, the fees applied will no longer be calculated differentially based on the value criteria, thus BVB will get a 0.0002 percent fee of the traded value, but not less than 1 lei and maximum 5 lei for both sides.