Saudi regulator sets basis points for new commission sharing tool

21/07/2016 Argaam

The Capital Market Authority (CMA), Saudi Arabia’s market regulator, has set basis points for the new commission sharing mechanism on Tadawul.

 

Under the new rules, authorized persons (brokerage firms) will receive 0.000105, or 10.5 basis points (bps) of transaction value.

 

The share of CMA and Saudi Stock Exchange (Tadawul) stands at 0.0005, or 5 bps of transaction value. 

 

The market regulator added that brokerage firms can reduce commissions for clients in light of a broker’s share.

 

The CMA recently raised trading commission from 12 bps to 15.5 bps per transaction, or SAR 15.5 for every transaction worth SAR 10,000. It also eliminated fixed commission on equity transactions equal to or less than SAR 10,000, Argaam earlier reported. The decision came into effect on July 17. 

 

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