Bahrain Bourse cuts levy on key transactions
Manama, November 12, 2013
Bahrain Bourse (BHB) has announced reduction in levy on online trading transactions with effect from November 28, a report said.
According to a new resolution issued by BHB chairman Yusuf Abdulla Humood, brokers' commission on online trading has been set at 0.2 per cent of the value of each transaction while the commission between the client and the broker will remain negotiable with a maximum of 0.2 per cent of the value of the transaction, reported the Gulf Daily News, our sister publication.
The resolution also states that BHB's commission from brokers for the transactions they conduct through online trading will be 15 per cent of the broker's commission and will be calculated based on the broker's total buy and sell deals on each trading day.
BHB deputy chief executive and chief operating officer Shaikh Khalifa bin Ebrahim Al Khalifa said the move is part of the "online trading incentive programme" launched to boost trading activity and enhance liquidity.
The programme includes a promotional package offering benefits for participating brokers and investors.
Shaikh Khalifa said the commission on online trading is 30 per cent lower than the commission on conventional trading, which is expected to maximise returns generated from online trading.
"BHB has received many applications from brokerages wanting to sign up for online trade following the launch of the incentive programme.
"The reduced levy will be applicable for two years from November 28," Shaikh Khalifa added. – TradeArabia News Service