The Nigerian Stock Exchange (NSE) has commenced the reduction of the cost of its trade alert service by about N 1.24 billion from March 2014 via the scrapping of the current charge of 0.06% of every trade on The Exchange and an introduction of an enhanced notification system, X-Alert which will be charged at a flat fee of N4 per transaction.
The X-Alert is a service that will allow the investing publics know when a transaction has been made on their account. Explaining the facility, the executive director of market operations and technology, Mr. Ade Bajomo, said each time investors buy or sell a security, an alert is sent to them via a text message to the recipient’s mobile phone or via an e-mail to the recipient’s mailbox.
“So what that does is to bring real time notification plus transparency to the market at market rates while safeguarding against unauthorised sale or purchase of securities” said Bajomo.
According to him, the big difference for the investing community is that rather than pay 0.12% of every trade round-trip, investors will now pay a flat fee of N4.00. Based on 2013 figures, the trade alert charges with the old system were some N 1.25 billion; with the improved notification system however, the annual cost of the alerts would be some N5.52 million based on a N4 flat fee – that is a reduction of N 1.24 billion per annum in the cost incurred by investors transacting in the market.
Casting more light on the development, the managing director of CSCS, Mr. Kyari Bukar shared that the enhanced service is delivered in real time to customers. He also urged that all customers should ensure that their brokers are provided with up to date mobile phone numbers and email accounts to enable the notification system work effectively and provide timely update on all account transactions.
