Karachi: Pakistan Stock Exchange (PSX) announced a proposal for changes in its brokerage commission structure and trading fees, particularly for the trading of Government of Pakistan Ijarah Sukuk (GIS) in the secondary market. The PSX aims to standardize brokerage commissions and reduce trading fees to enhance market competitiveness and attract more participation from brokers, banks, and mutual funds.

The proposed changes include setting a new brokerage commission for IDS based Non-Broker Clearing Members (NBCMs) at 0.0100%, and for non-IDS based NBCMs, a variable rate between 0.0700% to 0.0900%. These adjustments are designed to reflect the days-to-maturity (DTM) for securities with a DTM of less than one year, applying to both buy and sell transactions. According to information available from the Pakistan Stock Exchange (PSX), these measures are intended to bring the GIS secondary market trading fees on par with Over-The-Counter market rates for Government Debt Securities (GDS).

Additionally, PSX plans to decrease the Trading Fee to 0.001% and the Securities and Exchange Commission of Pakistan (SECP) Levy to 0.00040% for GIS transactions. These reductions are proposed for an interim period, with specific commencement and conclusion dates to be announced by the exchange.

Interested parties have until November 7, 2024, to submit their comments on these proposed amendments. The submission can be made through email or traditional mail, as outlined in the notice provided by the PSX. This feedback period allows stakeholders to influence the final decision regarding these regulatory changes.

The announcement follows the trends of regulatory adjustments within financial markets globally, where standardizations of fees and commissions are becoming more common to ensure transparent and competitive market conditions.