TORONTO - TMX Group Inc. (TSX:X) says it will reduce its trading fees for securities trading at $1 or higher on the Toronto Stock Exchange and the TSX Venture Exchange.
The changes, which will take effect April 1, will replace the current three-tier fee structure with a simpler two-tier structure, TMX said. Under the new model, the fee per share for companies that see less than 250 million shares trade hands per month will be reduced to 0.35 cent for active trades with a passive trade rebate of 0.34 cent.
For companies that see 250 million shares or more trade hands per month, the fee will be 0.34 cent for active trades, with a passive trade rebate of 0.31 cent per share.
TMX also said Friday it has introduced a separate program to reward high-volume organizations. Details of the program were not released.
"Today’s changes will deliver significant benefits to all market participants and further enhance our competitive position," stated Kevan Cowan, group head of TMX Equities and president of TSX Markets.
"These measures are intended to encourage higher volume and liquidity levels, reduce the cost of raising capital for listed issuers and strengthen the Canadian capital markets overall."
Friday’s announcement follows a move by TMX earlier this year to reduce trading fees for securities valued at under $1 by approximately 50 per cent.
The stock exchange operator said the new fee reductions could reduce its revenue by approximately $11 million to $15 million annually, or two to 2.7 per cent.
TMX Group employs 845 people across its organization, and operates the Toronto Stock Exchange as well as several other markets including the TSX Venture Exchange, Montreal Exchange, Natural Gas Exchange and Boston Options Exchange.
Its principal activities are to provide electronic, screen-based equity securities market information.
Shares in the company, which made the announcement after markets closed, lost three cents to $30.17 in Friday trading.
