NEW YORK, March 19 (Reuters) - TMX Group Inc (X.TO), the operator of the Toronto Stock Exchange, on Friday said it will reduce trading fees for securities trading at C$1 and higher on the TSE and the TSX Venture Exchange.
Starting on April 1, the fee per share on active trades for the “lower tier,” representing fewer than 250 million shares per month, will be reduced to C$0.0035, and the passive trade rebate will be C$0.0031, TMX said.
It said that for the “higher tier,” equal to 250 million shares per month and higher, the fee on active trades will be $0.0034 per share and the passive trade rebate will be $0.0031 per share.
TMX said the changes could reduce annual revenue by about C$11 million to C$15 million, or 2 percent to 2.7 percent based on 2009 results, assuming offsetting benefits such as increased volume do not occur.
The changes require regulatory approval.
Kevan Cowan, group head of TMX Equities and president of TSX Markets, in a statement said the changes are designed to encourage higher volume and liquidity, while reducing the cost of raising capital for listed issuers. (Reporting by Jonathan Stempel; Editing by Gary Hill)