Investors will benefit from a new trade and settlement fee arrangement which was approved by the Board of Directors of the Jamaica Central Securities Depository (JCSD). The current fixed Settlement charges on each side of a trade on the market will be removed. Instead, a fee of three (3) basis points of the value on each side of the trade will be charged. This change will take effect on October 1, 2018.
The JCSD decided to implement this fee structure in response to investors’ feedback on the current practice of charging a settlement fee for each trade filled for an order. The new fee arrangement means that the cost for each order will be based on the value of that trade and the cost of the transaction will be based on the value despite the number of trades required to fill the order.
According to Ms. Andrea Kelly, JCSD’s General Manager, “This decision by the JCSD Board is positive for the market and small investors stand to benefit from this change. To attract our previous minimum settlement fee of J$110, an investor would need to be settling a trade value of just over J$366,000.00. We are working with our brokers to ensure a smooth implementation on the 1st of October.”
Mrs. Marlene Street Forrest, Managing Director of the JSE, commenting on the change, stated, “We constantly listen to the feedback from the market and ensure that we make improvements in the best interest of our customers. This change is in direct response to our investors. It is a positive change, which should result in more transactions across the floor of the Exchange as trade and settlement becomes more affordable”.
