HKEX Enhances Stock Settlement Fee Structure for Securities Market

Hong Kong Exchanges and Clearing Limited (HKEX) has announced enhancements to the stock settlement fee structure for the securities market, effective June 2025. The changes aim to improve market efficiency and ensure consistent fee application across all trade sizes. The current minimum fee of $2 and maximum fee of $100 will be eliminated, establishing a new ad valorem rate of 0.42 basis points (0.0042%) for each trade. Additionally, eligible market making trades for Exchange Traded Products (ETPs) will incur a reduced fee of 0.20 basis points (0.0020%). This revised structure is designed to be cost-neutral overall, benefiting approximately 77% of trades from lower fees. HKEX Chief Operating Officer Vanessa Lau emphasized the commitment to creating a vibrant marketplace and supporting investors’ trading strategies. The changes have received approval from the Securities and Futures Commission (SFC) and will coincide with the upcoming reduction in minimum spreads, encouraging smaller trade sizes. Further details will be provided in an accompanying circular and information sheet. Resources: https://www.hkex.com.hk/News/Market-Communications/2025/250221news?sc_lang=en