In order to encourage greater trading and liquidity for the exchange's marketplaces, Oslo Børs announces significant reductions in the fees charged for trading in shares listed on Oslo Børs and Oslo Axess.
In addition, Oslo Børs is changing its pricing model to offer a greater range of choices and to better meet the differing needs of customers.
"These reductions in Oslo Børs trading fees will benefit our customers, and will also help to strengthen liquidity and so improve the quality of our marketplaces. Our focus is on customers' preferences and requirements. Customers are clearly looking for services and markets that offer high quality standards at competitive prices", comments Bente A. Landsnes, President and CEO of Oslo Børs.
Oslo Børs has operated with a pricing model that is characterised by transaction-based pricing and minimum fees. Trading patterns in the securities markets have changed markedly over the recent past. The number of transactions has increased significantly, but the average value of each transaction has fallen. The falls in prices caused by the global financial crisis have accelerated this trend. This has meant that the Oslo Børs pricing model has caused the cost of trading to increase relative to the volume traded. Oslo Børs recognizes that this is an unfortunate consequence of the model used, and has therefore significantly restructured its pricing model in addition to reducing fees.
The new pricing model is considerably simpler, will be more predictable in operation and is better suited to the requirements of the various types of participants in the market. The model will feature the following main elements:
- A fee for each order carried out is introduced to replace the current transaction fee
- The current minimum trading fees are abolished
- The maximum trading fees are abolished for trading carried out through the exchange's trading system
- Member firms will be able to choose between four alternative fee tariffs rather than the current choice of two tariffs
- Discounts will be introduced for trading in all OBX shares (the 25 most heavily traded shares)
The detailed price tariff is available on the Oslo Børs website at: oslobors.no/ob/avgifter. The new pricing model will come into effect on 1 May 2009.
Based on trading activity for 2008 as a whole, the revised pricing model and lower fees will cause a reduction in annual revenue for Oslo Børs somewhat in excess of NOK 110 million.
Oslo Børs last reduced its trading fees in September 2008.