On 1 June 2014, the clearing, transfer and onward settlement fee structure for the Singapore Exchange Securities Trading Limited (the "SGX-ST") will be revised. The implementation deadline for the revised fee structure was moved from 2 May 2014 to 1 June 2014 to provide market participants with time to complete changes required of their systems and processes.
Reduced clearing fee
The clearing fee will be reduced from 0.04% to 0.0325% of contract value. The cap of S$600 on clearing fee for contracts of S$1.5 million or more will be removed. Investors will benefit from lower transaction costs when investing in shares on the SGX-ST.
Revised settlement fee
The transfer and onward settlement fees will be standardised and revised to encourage on-exchange trade, thereby increasing transparency and liquidity in Singapore's securities market.
For an on-exchange transaction on the SGX-ST, the settlement fee is S$30 per settlement instruction. For a transaction that is not an on-exchange transaction on the SGX-ST, the settlement fee is 0.015% of the value of the transaction, subject to a minimum of S$75 per settlement instruction.
Incentive programme for market makers and liquidity providers
In addition, on 1 June 2014, the new "SGX Market Maker and Liquidity Provider Programme" will also be made available to market participants who trade as a principal using proprietary capital and can satisfy certain eligibility criteria.
The SGX press release dated 10 April 2014 relating to this development is available from the SGX website www.sgx.com by clicking here.