Tadawul Group receives CMA nod on new fee structure for subsidiaries

Logo of Saudi Tadawul Group Holding Co.

Saudi Tadawul Group Holding Co. (Tadawul Group) said the Capital Market Authority (CMA) on March 26 approved the new fees structure for the services provided by the group’s subsidiaries –Saudi Exchange, Securities Depository Center (Edaa) and Securities Clearing Center (Muqassa).

The new fees structure is related to the shares buy and sell commissions, the units of Real Estate Investment Traded (REITs) funds, Exchange-Traded Funds (ETFs), Closed-End Funds (CEFs), and tradable rights, Tadawul Group said in a statement.

The new levy will be 2.0 basis points on each transaction from each party (the seller and the buyer), instead of 1.8 basis points, which was calculated at 0.9 basis point for the trading services, and 0.9 for the settlement and safekeeping services.

The revised fees for the trading service to be charged by the Saudi Exchange will be 0.00009, which equals to 0.9 basis points of the executed transaction value.

The new fees structure for the settlement service to be charged by Edaa will be 0.00005, which is equal to 0.5 basis points of the executed transaction value. Also, Edaa will charge, for the safekeeping services, 0.00001 that is equal to 0.1 basis points of the executed transaction value.

The new levy for the clearing service to be charged by Muqassa will be 0.00005, which is equal to 0.5 basis points of the executed transaction value.

According to the Tadawul Group, the new fees structure will not have an impact on the current total buy and sell commission, where it is 15.5 basis points.

The restructured fees will be implemented starting April 3, to coincide with the launch of a bundle of enhancements to develop post-trade infrastructure.

The revision is expected to have a positive impact on the group’s financial results, starting from the Q2 2022.

Earlier this month, the Tadawul Group announced its intention to roll out new enhancements through its subsidiaries – Saudi Exchange, Muqassa and Edaa – to develop the post-trade services infrastructure, Argaam reported.