Norwegian exchange group Oslo Børs will introduce a new fee schedule on 1 May, which it claims offers “significant reductions” on the existing tariff introduced last September. The exchange expects the new pricing to cut its annual revenues by more than NOK 110 million (€12.7 million).
Oslo Børs announced earlier this month that it would cut its fees after rival exchange group Nasdaq OMX unveiled plans to start trading Norwegian stocks from 23 March.
Under the new pricing model, a per-order fee will replace the existing per-transaction fee, and the current minimum trading fees will be abolished. Maximum trading fees have also been axed for trading carried out through the exchange’s system. In addition, Oslo Børs will offer discounts for trading in all OBX shares – the 25 most actively traded stocks on the exchange.
The exchange noted that rising transaction numbers and falling transaction values, trends which have been exacerbated by the global financial crisis, render its existing system of transaction-based pricing and minimum fees untenable because it increases trading costs for higher volumes. “Oslo Børs recognises that this is an unfortunate consequence of the model used and has therefore significantly restructured its pricing model in addition to reducing fees,” the exchange said in a statement.
As well as reducing trading costs, Oslo Børs said its new fee structure is simpler and offers more choice. For example, under the new system, users can choose between four tariffs instead of the existing two.
“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,” said Bente Landsnes, president and CEO of Oslo Børs, in the statement. “Our focus is on customers’ preferences and requirements. Customers are clearly looking for services and markets that offer high quality standards at competitive prices.”