The Nigerian Stock Exchange (NSE) said it has commenced a process that will reduce the amount investors pay for transactions on the Exchange.
A statement on Tuesday by the Head, Public Relations, NSE, Mr. Dante Martins, explained the NSE would reduce the cost of its trade alert by about N1.24bn. This, it stated, would be done through the scrapping of the 0.06 per cent charge on every trade on the Exchange and the introduction of an enhanced notification system.
According to the statement, under the new notification system, X-Alert, which became effective this month, a flat fee of N4 will be charged per transaction.
The Executive Director, Market Operations and Technology, NSE, Mr. Ade Bajomo, was quoted as saying that apart from the reduced cost of transaction, the new system would effectively keep investors updated about transactions made on their account.
He said, “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 unauthorised sale or purchase of securities.
“The big difference for the investing community is that rather than pay 0.12 per cent of every trade roundtrip, investors will now pay a flat fee of N4. Based on 2013 figures, the trade alert charges with the old system amounted to about N1.25bn; with the improved notification system however, the annual cost of the alerts would be some N5.52m based on a N4 flat fee – that is a reduction of N 1.24bn per annum in the cost incurred by investors transacting in the market.”
The Managing Director, Central Securities Clearing System, Mr. Kyari Bukar, was quoted as saying that the enhanced service would ensure that messages and alerts were delivered in real time to customers.
To ensure that they benefit from the new notification system, Bukar advised customers to ensure that they provide their brokers with up-to-date mobile phone numbers and email addresses.
According to him, this will enable the notification system to work effectively and provide timely update on all account transactions.
He explained that the new notification system had added benefits such as effective fraud alert in cases of unauthorised transactions on a customer’s account, reduction in time spent confirming transactions and an enhancement of transparency between trader and client.