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Singapore Exchange to reduce stock clearing fees

Singapore Exchange (SGX) will revise its fee structure and provide various incentives in a bid to boost trading volumes and encourage brokers to provide more attractive buy and sell quotes.

SINGAPORE: Singapore Exchange (SGX) will revise its fee structure and provide various incentives in a bid to boost trading volumes and encourage brokers to provide more attractive buy and sell quotes.

It said in a statement it will reduce clearing fees by one-fifth to 0.0325 per cent of the contract value from 0.04 per cent.

SGX will also remove the cap of S$600 on clearing fees for contracts worth S$1.5 million or more.

Transfers and onward settlement fees, which are mainly levied on brokers and depository agents, will be revised to encourage them to trade stocks via the exchange, thereby increasing transparency and liquidity.

A fee of S$30 will be charged for on-exchange transfers and onward settlements.

Meanwhile, for transfers and onward settlements carried out off-exchange, a fee of 0.015 per cent of the value of the transaction, or a minimum of S$75, will be charged.

SGX said its incentive schemes will encourage financial institutions to provide more competitive two-way quotes, helping boost trading volumes. 

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