B3S NEW FEE POLICY 1 1 1 PUBLIC INFORMATION Interest Rate - - PowerPoint PPT Presentation
B3S NEW FEE POLICY 1 1 1 PUBLIC INFORMATION Interest Rate Investments Individual investors by investment type Accumulated net inflows by fund class (in thousands) (in billions of Brazilian Reals) 2.500 2.192 200 2.017 2.000
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Individual investors by investment type (in thousands)²
2.500
¹ Source: Anbima.
Accumulated net inflows by fund class (in billions of Brazilian Reals)¹
112 161 78 51 (50)
100 150 200
Fixed Income Equity FIDC
2016 2017 2018 Sep-19
Multimarkets
² Source: Anbima e B3
500 1.000 1.500 2.000 2.017 1.417 1.375 2016 2017 2018 Sep-19 2.192
FII Depositary Accounts B3 Equity Funds Multimarket 2
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BOOST THE GROWTH OF B3’S INDIVIDUAL INVESTORS BASE
EXPAND TRADING VOLUME AND INCREASE MARKET LIQUIDITY
EQUALIZE FEE PRACTICES
Estimated impact:
million/year reduction in fees charged
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Equalization of fees among different types
institutional, non- resident, individual investors, etc.) Automatic fee reduction as each investor volume increases Boost securities lending transactions and increase the transparency of these transactions Deeper discounts and more accessible benefits, plus special incentives, for large day traders Billing by processing financial earnings with exemption for retail investors with
positions below R$20,000.00 Elimination of fixed maintenance fee per account of around R$110.00 per year and exemption from custody fee for investors with outstanding positions below R$20,000.00
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Discounts limited to day trade transactions. Discounts now given to non-day trade transactions. Non-day trade discount based on the total volume traded by the market and low impact potential. Fee structure based on the volume traded by customer in all brokerage houses; the volume can be aggregated under a master account. 0.0325% over the traded volume. 0.025% over the traded volume per local funds. 0.03% applied to all investor
R$100,000.00 per trading day and may reach up to 0.0125%
*Only B3’s fees considered. Does not include brokerage house fees.
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Up to R$9.28/month for residents.
Account maintenance Custody fee
Progressive fee discount ranging from 0.0130% to 0.0005% per year over the value in custody. Fee waived for investments up to R$300,000.00 and for non- resident investors. Fee waived for investments up to R$20,000.00. From R$20,000.01 to R$300,000.00 – 0.05% to 0.02% per year over value in custody. Above R$300,000.01 – 0.0130% to 0.0005% per year over value in custody.
R$115.83/month for non-residents.
*Only B3’s fees considered. Does not include brokerage house fees.
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NEW INCENTIVE PROGRAM
approved by B3.
volume traded.
LARGE DAY TRADERS
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Fixed fee of 0.25% per year regardless of the security’s lending cost. Percentage over the security’s lending fee with incentive to transparency:
Minimum fee of R$10.00 per lending transaction. Definition of floor and cap fee with incentive to transparency:
security’s lending value with 1.5% cap per year
*Only B3’s fees considered. Does not include brokerage house fees.
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among different types of investors
model widely used by international depositories EQUALIZE FEE PRACTICES
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Up to R$9.28/month
Account Maintenance Custody fee
Progressive table ranging from 0.0130% to 0.0005% per year over the value in
investments up to R$300,000.00.
Fee waived for investments up to R$20,000.00.
From R$20,000.01 to R$300,000.00 – 0.05% to
0.02% per year over the value in custody.
Above R$300,000.01 – 0.0130% to
0.0005% per year over the value in custody.
*Only B3’s fees considered. Does not include brokerage house fees.
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0.025% over traded value. Additional reduction for individual investors trading R$100,000.00 per day. Table with 11 discount ranges and minimum fee of 0.008% over traded value. 0.025% over traded value. Additional reduction for individual investors trading over R$4 m in cash equities and fee table with 5 discount ranges.
Day trade Non-day trade
0.0325% over traded value. Reduction based on total market volume. 0.03% over traded value. Additional reductions from R$100,000.00 per day and reduced fee up to 0,0125% over traded value.
*Only B3’s fees considered. Does not include brokerage house fees.
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A pension fund has R$ 1
billion under custody. It trades on average R$4 million per day, non-day
year, dividends were paid at a dividend yield
Example 1
TOTAL: R$339.534,00 TOTAL: R$328.989,96
Non-day Trade
CURRENT MODEL NEW MODEL
Value in Custody Fee
Custody Maintenance Fee Earnings Processing Fee Day Trade
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For 1 year, a Non- Resident Investment fund traded on average R$10 million non-day trade and R$5 million day trade everyday. It also kept R$1 billion under custody. At the end of the year, the dividend yield was 3%.
Example 2
CURRENT MODEL NEW MODEL
TOTAL: R$989.289,60 TOTAL: R$1.126.389,96
Non-day Trade Value in Custody Fee
Custody Maintenance Fee Earnings Processing Fee Day Trade
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Non-Resident Investor registered on the Large Daytraders Program trades R$600 million in day trades everyday.
Example 3
CURRENT MODEL NEW MODEL
– –
TOTAL: R$68.400,00 TOTAL: R$96.000,00
Non-day Trade Value in Custody Fee
Custody Maintenance Fee Earnings Processing Fee Day Trade
– –
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