Published On: Fri, Aug 22nd, 2014

SZSE Quotation Rate Accelerates And Fees Slashed

Chen Dongzheng Chairman SZSE

Chen Dongzheng Chairman SZSE

Recently, Shenzhen Stock Exchange (SZSE) and Shenzhen Securities Communication Co., Ltd. jointly announced to slash the communication charging standard in Shenzhen Market, and speed up the quotation rate. According relevant principal from SZSE, the quotation rate acceleration and communication fee slash were important measures of implementing relevant requirement put forward in the State Council’s ‘9 New Opinions’, as to improve the service to members, and facilitate better and faster development of the industry and market.

Securities communication fees in Shenzhen Market primarily include basic service fee, communication connection fee, quotation gateway software service fee, etc.. The communication fee slash and quotation rate acceleration involved three aspects: firstly, ‘basic service fee of business department’ and ‘fund multiple-seats quotation fee’ have been cancelled, meanwhile the charging method of ‘communication connection fee’ have been adjusted not to link with the number of the business branches; secondly, ‘quotation gateway software service fee’ have been ladder priced according to the users’ number of gateways. In this way, the market body can autonomously choose the number of communication resource to suit their own needs, effectively allocating their communication resources; thirdly, the every unit of standard flow velocity accelerates from 25 quotations per second to 50 quotations per second. The rate of overall quotation in Shenzhen Market accelerates from 114 thousand quotations per second to 228 thousand per second without increasing the cost. The principal indicated that the measures would slash the communication cost of securities institutions, and further activate their vitality in expanding their business and innovation. As estimated according to the data in 2013, the overall communication fee of Shenzhen Market will drop by more than 60%, reducing 180 million Yuan per year. Nearly 100 members will be benefit from this measure, and more than half of these members will enjoy more than 50% drop in communication fee.

In order to lower the market trading cost, and facilitate the innovative development of the industry, Shenzhen Market have accelerated the quotation rate and reduced the cost three times successively in recent years: quotation rate increased from 15 quotations per second to 25 quotations per second in 2009; the data rate reduced from 0.15 Yuan per commission trading to 0.1 Yuan in 2010; the trading brokerage has been reduced from 0.122‰ of the trading amount to 0.087‰ as of June, 2012, and further reduced to 0.0696‰ on September, 2012.

The principal finally expressed that, SZSE would uphold the principle of primacy of service as always, actively implement the policy deploy made by the State Council and China Securities Regulatory Commission, improve the serving capacity as to adapt for the market change, and meet the market demand, and better facilitate the development of multi-tiered capital market.

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