BVB moves to cut trading costs

The Ordinary and Extraordinary Shareholders Meetings of the Bucharest Stock Exchange (BVB), on April 12, took several decisions, based on the proposals of the company’s Board and the Executive team, among which the decrease in the variable fee on the traded value on the regular market, by 0.5 basis points for both the buyers and the sellers, according to BVB.

This change represents a significant reduction of the direct transactional cost for the market participants, by over 12 percent on the buy side and by 5 percent on the sell side. This change is a continuation of the reduction of the transactional costs initiated in 2014. It can lower the cost of trading for all group of clients, according to the BVB.

In parallel, BVB will introduce a fixed fee for each executed order, which will not affect negatively any of the groups of the clients of the capital market. BVB expects that the introduction of the lower variable fee on the value of the transaction and the fixed fee per executed order will have a positive impact on the broad liquidity in the market.

The new combination of the fees may also lead to a consolidation of the mass of micro-orders, which are present on the BVB, but are atypical for the capital markets, says the BVB.