Tadawul & Edaa Announce Changes on the Services Fees for Sukuk and Bonds Market

Thursday, April 25, 2019 at 9:15 AM

Thu Apr 25, 2019 09:15

In line with the Financial Sector Development Program initiative to develop the Saudi Debt Market, and upon Capital Market Authority’s (CMA) Board resolution issued on 23/04/2019, the Saudi Stock Exchange (Tadawul) and the Securities Depository Center Company (Edaa) announce fees restructure for the services provided in Sukuk and Bonds market as the following:

For Issuers:
1)    Edaa’s IPO file upload fees will be decreased from 50,000 SAR as fixed fees and 2 SAR per subscriber as variable fees, to 10,000 SAR as fixed fees only, for listed Sukuk and Bonds.
2)    Edaa’s annual registry fees will be decreased from 100,000 SAR to 20,000 SAR, for listed Sukuk and Bonds.
3)    Tadawul’s minimum fee required for annual listing fees will be decreased from 30,000 SAR to 10,000 SAR for first issuances.
4)     Tadawul’s minimum fee required for annual listing fees will be decreased from 30,000 SAR to 5,000 SAR for following issuances.
5)    Tadawul will introduce a cap for the annual listing fees amounting to 50,000 SAR for first issuances
6)    Tadawul will introduce a cap for the annual listing fees amounting to 25,000 SAR for following issuances. 

For Members and Investors:
7)    Brokerage trading commission will be deregulated by removing the minimum commission and cap of 500 SAR, in an effort to encourage fair competition with the services provided by brokerage firms.
8)    Reduce Sukuk and Bonds trading commission from 2 bps to 1 bps of the traded value.
9)    A waiver of 50% of Sukuk and Bonds trading commission mentioned in article no. 8 on all types of investors until 31/12/2021, with the exception to cases in which a buyer or seller is an appointed Primary Dealer.

10)    Edaa will introduce safekeeping fee of 0.4 bps for listed Sukuk and Bonds holdings per year in an effort to increase trading in the secondary market, including stimulating financing activities such as securities lending and repurchase agreements to maximize the return on assets and recover the value of holdings.

The above mentioned changes shall be effective starting from Sunday 09/06/2019