The Johannesburg Stock Exchange has adopted the ‘maker taker’ pricing model for its equity derivatives, and has cut trading fees for single stock futures and options traded through the central order book almost to zero.
The new billing model follows a consultation with market participants, advisory bodies and regulators. “Since our last change in fee structure, the market has evolved drastically and we have adopted the new model to adapt to these changing circumstances,” said Anthony Leibrandt, manager of equity derivatives trading at JSE in Johannesburg.
While the exchange acknowledges that a mechanism will always be needed for reporting bilaterally agreed trades to the exchange, as a regulator it also has to ensure the end customer gets the best price.
This can only be guaranteed, JSE...