ASX Limited
(ASX:ASX) is reportedly gearing up to give stockbrokers a rebate on their trading fees next year. According to Fairfax Media the operator of the Australian Securities Exchange has decided to offer the rebate in an effort to boost investment activity and stay competitive against rival trading platform Chi-X.
The report says the scheme will see ASX’s fee revenue over an annual growth threshold shared equally between the exchange and brokers. That threshold will be set at zero for the first 18 months.
The scheme is expected to be launched on January 1, 2013 and has been forecast to cost the ASX $400,000 in the current financial year, rising to $9 million in the following financial year.
CEO Elmer Funke Kupper is understood to have said rising costs, increased regulation and declining activity levels are creating significant challenges and the new arrangements are important in the current environment.
ASX reported a 3.7 per cent fall in its full year net profit, coming in at $339 million.
