NASSAU, BAHAMAS — The Central Bank has announced that it will no longer absorb BISX trading fees effective October 1.
The regulator noted that, in its capacity as Registrar and Transfer Agent for Bahamas Registered Stock and Treasury Bills, it purchases securities in the secondary market as needed to provide liquidity in cases where the market is unable to organically do so.
Since May 2021, Bahamas Government securities have been listed on and traded across the Bahamas International Securities Exchange (BISX), which charges a fee of five basis points plus VAT for transactions conducted across the Exchange. Since that time the Central Bank has absorbed those charges, effectively subsidizing transaction costs for the secondary market.
“In its continued efforts to develop the domestic debt market, support price transparency in market transactions, and strengthen the Central Bank’s strategic position as the liquidity provider of last resort, effective October 1, 2023, the Central Bank will begin to recover the BISX-imposed charges by passing them on to its secondary market counterparties involved in the respective transactions,” the Central Bank staed.
“This means that, in addition to the fees currently charged by brokers, an additional five basis points may be passed on to the ultimate customer.”
