- Existing cash market fixed trading tariff of $0.50 to be removed
- Cash market ad valorem trading fee to be adjusted from 0.005% to 0.00565%
- Effective on 1 January 2023
Hong Kong Exchanges and Clearing Limited (HKEX) is today (Tuesday) pleased to announce enhancements to the existing cash market trading fee structure, including 1) the removal of the trading tariff of $0.50 payable on each transaction; and 2) the adjustment of the ad valorem fee on all trades from the current level of 0.005% to 0.00565%. The new trading fee structure will take effect on 1 January 2023.
These enhancements will result in a simpler and more predictable cash market trading fee structure, lowering the effective trading fee rate (trading tariff and trading fee in percentage terms) from a historical average of approximately 0.00576% to 0.00565%1.
HKEX Co-Chief Operating Officer & Co-Head of Markets Wilfred Yiu said: “HKEX has worked with regulators, business partners and market participants to agree to the new fee structure, providing greater simplicity and market efficiency. It reflects HKEX's longstanding ongoing commitment to enhancing the attractiveness and competitiveness of its markets as we work to further strengthen Hong Kong’s role as one of the world’s premier international financial centres.”
The introduction of the new trading fee structure is the latest HKEX initiative focused on enhancing the attractiveness of Hong Kong’s markets. Over the past six months, HKEX launched Derivatives Holiday Trading; announced revisions to the position limit regime for single stock options and futures markets; and welcomed upcoming enhancements to the trading calendar under Stock Connect. HKEX looks forward to continuing to work with all its stakeholders to support the growth of the Hong Kong market.
Please refer to the circular for details of the enhancements to the cash market trading fee structure.
Amendments will be made to the Listing Rules and Trading Rules of the Exchange in connection with the change in the ad valorem trading fee rate. Please refer to Update No. 139 and Update No. 74 for details of the amendments to the Main Board Listing Rules and the GEM Listing Rules respectively; amendments to Trading Rules of the Exchange will be announced separately in due course.
Note:
- Based on trading statistics from 2014 to 2021.
About HKEX
Hong Kong Exchanges and Clearing Limited (HKEX) is a publicly-traded company (HKEX Stock Code:388) and one of the world’s leading global exchange groups, offering a range of equity, derivative, commodity, fixed income and other financial markets, products and services, including the London Metal Exchange.
As a superconnector and gateway between East and West, HKEX facilitates the two-way flow of capital, ideas and dialogue between China and the rest of world, through its pioneering Connect schemes, increasingly diversified product ecosystem and its deep, liquid and international markets.
HKEX is a purpose-led organisation which, across its business and through the work of HKEX Foundation, seeks to connect, promote and progress its markets and the communities it supports for the prosperity of all.
www.hkexgroup.com
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