A proposal is floating around the Bratislava Stock Exchange (BSE) calling for the Flat Trading Fee for direct trades instructed by local custodians on behalf of their foreign clients (settlement fee for custody transactions in listed securities on behalf of foreign investors) to be abolished in order to equalise market conditions for foreign and domestic investors.
Currently, in addition to CSD settlement fees, BSE charges its members settling custody transactions on behalf of its foreign clientele a Flat Trading Fee of SKK 500,00 (EUR 12,50) while domestic investors are charged 0,08% of the trading amount with a minimum of SKK 100,00 (EUR 2,50) and a maximum of SKK 10.000,00 (EUR 250,00).
Now, BSE proposes to unite both fees and charge to both, foreign and domestic investors, a trading fee of 0,08% of the trading amount, min. SKK 300,00 (EUR 7,50) and max. SKK 4.000,00 (EUR 100,00) for against payment transactions, and 0,08% of the trading amount, min. SKK 300,00 (EUR 7,50) MAX SKK 2.000,00 (EUR 50,00) for free of payment transactions, according to a BA-CA news flash.
According to market statistics almost every settled amount on behalf of a foreign investor would qualify for the maximum fee, which would be 8 times higher for against payment transaction and 4 times higher for free of payment transactions then the Flat Trading Fee currently valid.
A CSD fee for an OTC settlement is currently at a level of 0,06% of the trading amount min. SKK 50,00 (EUR 1,25), max. SKK 5.000,00 (EUR 125,00) for a DVP transaction. However according to the current wording of the BSE Membership Rules a trade in listed securities must be conducted over the stock exchange.