Thai bourse changes repurchase fee to a flat rate
To ease cost calculation, Thailand Securities Depository (TSD)’s Board of Directors has resolved to adjust the repurchase (repo) fee from the current progressive rates to a flat rate of 0.015% per annum. To encourage use of the service, the board announced that TSD members that have applied for and used the service by the end of this year will receive a 25% discount.
Both initiatives will increase the liquidity underlying repo transactions by the private sector, following the Bank of Thailand (BOT)’s planned closure of its repo market at the end of this year.
Under the new arrangement, the fee will be calculated daily from the total worth of bids and offers. Previously, members were charged fees monthly, at a minimum of THB 1,000 per month, TSD Chief Executive Officer Ms. Sopawadee Lertmanaschai said.