The European stock exchange Euronext has announced its revised annual fee scheme for the listing of exchange traded products. This includes ETFs, ETCs and ETNs and will be effective from 1 January 2019.
The annual fees are being reduced following client feedback. The fees were seen to be too expensive according to Euronext's clients. This is likely to encourage more ETFs to be introduced to the market.
The new scheme consists of reducing an annual Assets Under Management (AUM) fee as well as an Average Daily Volume (ADV) discount per ETP.
Value of total shares outstanding up to €100m remains the same, having a fixed fee of €1,500. Value over €100m will now have an annual fee of 0.25bps, reduced from its former fee of 0.3bps. The total annual fee cap will also be reduced, from €18,000 to €13,500.
Value of Total Shares OutstandingFormer Annual FeeNew Annual FeeUp To €100m€1,500€1,500Above €100m0.3bps0.25bpsCap€18,000€13,500
A discount for each product will be applied depending on the ADV per ETP. The discounts range from 40 to 60 per cent depending on which ADV percentile band the ETP falls in.
ADV PercentileDiscountLower BandUpper BandBand 1506040 per centBand 2607045 per centBand 3708050 per centBand 4809055 per centBand 59010060 per cent
Unfortunately, bad news for Ireland as these changes will not be applied to Euronext Dublin. Additionally no changes are being made to admissions fees.
