Company announced Saudi Tadawul Holding Group Issuance of the Capital Market Authority Board’s decision approving the new structure for the financial compensation for the services provided by the group’s subsidiaries (the Saudi Tadawul Company, the Securities Depository Center Company “Edaa” and the Securities Clearing Center Company “Muqassa”) regarding commissions for buying and selling shares and units of real estate investment funds exchange-traded funds (REITs), units of exchange-traded funds (ETFs), units of closed-end investment funds (CEFs), and priority rights.
The sum of the new fees that the three companies will charge for these services above will be 2.0 basis points per transaction from each party (seller and buyer), instead of 1.8 basis points which were calculated as 0.9 basis points for the trading service and 0.9 basis points for the settlement and custody services.
The new structure of the financial consideration for the above-mentioned services that will be charged by the Saudi Tadawul Company, the Securities Depository Center Company (Edaa) and the Securities Clearing Center Company (Muqassa) will be calculated as follows:
The financial consideration for the trading service, which will be charged by the Saudi Tadawul Company, is (0.00009) nine percent thousand, which is equal to 0.9 basis points of the value of the executed transaction.
The financial consideration for the settlement service, which will be charged by the Securities Depository Center Company “Edaa”, is (0.00005) five percent thousand, which is equal to 0.5 basis points of the value of the executed transaction.
The financial consideration for the custody service, which will be charged by the Securities Depository Center Company “Edaa”, is (0.00001) one hundred thousand, which is equal to 0.1 basis points of the value of the executed transaction.
The financial consideration for the clearing service that will be charged by the Securities Clearing Center Company “Muqassa” shall be at the rate of (0.00005) five percent one thousand, which is equal to 0.5 basis points of the value of the executed transaction.
It should be noted that the restructuring of the new consideration will not have an impact on the current total buying and selling commission, which is 15.5 basis points.
Noting that the new structure of the financial consideration will start working on April 3, 2022 AD, coinciding with the launch date of the improvement package for the development of the post-trading infrastructure.
It is expected that there will be a positive impact on the financial results of the group starting from the second quarter of the fiscal year 2022 AD, after implementing the new structure for the financial consideration.