HK SFC Reducing Fees by 25 Percent
The 25% reduction in levy payable in respect of trading in securities, futures or options contracts, as proposed in the budget of the Securities and Futures Commission (SFC) for the year 2010-2011, will take effect from 1 October 2010.
“We have decided to reduce the levy after a careful review of our reserves position. We believe the benefit of lower transaction costs will positively impact market participation,” said Mr Martin Wheatley, the SFC’s Chief Executive Officer.
The Securities and Futures (Levy) (Amendment) Order 2010 which provides for the levy reduction was gazetted on 20 May 2010, and tabled at the Legislative Council for negative vetting on 26 May 2010 (Note 1).
1. Under the Securities and Futures (Levy) (Amendment) Order 2010, the levy payable by a seller or a purchaser in respect of:
a. a transaction of securities will be reduced from 0.004% to 0.003%;
b. a transaction of a futures contract will be reduced from $0.80 to $0.60;
c. a transaction of a Mini-Hang Seng Index Futures Contract, a Mini-Hang Seng Index Options Contract and a Mini-Hang Seng China Enterprises Index Futures Contract will be reduced from $0.16 to $0.12; and
d. a transaction of a stock futures contract or an option for such a contract will be reduced from $0.16 to $0.12.