Trading in NSE’s fixed income segment now attracts fee as 4-year moratorium elapses

The Nigerians Stock Exchange (NSE) has returned trading fee on assets in fixed income segment of the exchange following the end of free trading mode investors had enjoyed since 2016.

The Exchange on Friday announced enhancements to its fixed income securities market segment as well as the associated benefits to trade execution via its platform.

According to the bourse, this is in line with its ambition to support Nigeria’s economic growth by providing a liquid, efficient and multi-asset securities exchange hub.

In a statement , the management of the Exchange said as part of its liquidity-enhancing efforts, it had introduced a trading fee moratorium as communicated via a press release dated 11 August 2016 to stimulate activities and liquidity in the fixed income market.

“Following the end of the 4-year fixed income securities trading fee moratorium, the exchange has now received the regulatory approval of the Securities and Exchange Commission (SEC) to revise its fee structure.

“The revised fees will become effective on 5 October 2020. Under this revised fee structure, the Exchange will charge 0.0005% (N5 per million) on debt instruments traded on its platform,” the statement read.

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.

Investors trading via the NSE platform can also enjoy access to diverse listed debt instruments including federal government, state government, corporates, supranational and retail savings bonds.

“The Exchange continues 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,” the statement read.