Nigeria Stock Exchange cuts down transaction fees as X Alert goes live

Nigeria Stock Exchange cuts down transaction fees as X Alert goes live

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The Nigeria Stock Exchange has introduced an improved notification service called X-Alert for customers receive alert on their mobile devices and emails when any transaction is made.[blockquote right=”pull-right” cite=”NSE”]”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 unauthorized sale or purchase of securities.”[/blockquote]

As a result of the system, NSE says it is reducing cost of its trade alert service by N1.24 billion from March 2014 by scrapping the current charge of 0.06% of every trade on the exchange as X alert will be charged at a flat fee of N4 per transaction.

Speaking on the development, Ade Bajomo, Executive Director of Market Operations and Technology at the Exchange says that the enhanced X-Alert is a service that will allow the investing public know when a transaction has been made on their account.

“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 unauthorized sale or purchase of securities.”

Bajomo explains that “the difference for the investing community is that rather than pay 0.12% of every trade road trip investors will now pay a flat fee of N4. Based on 2013 figures the trade alerts charge with the old system was some N1.25 billion. With the improved notification system however,the annual cost of the alert would be some N5.52 million based on the N4 flat fee. That is a reduction of N1.24 billion per annum in the cost  incurred by investors transacting in the market.”

Kyari Bukar, MD CSCS commends the effectiveness of the programme by NSE and advises customers to provide updated mobile phone number and emails so they can receive instant  messages on any transaction to curb fraudulent act and to reduce time spent on confirming trade which enhances transparency between the trader and its clients.

 

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Kolade Akinola Technology Journalist at Technology Times Mobile: + 234 (0) 807 401 6027