Qatar Stock Exchange Eliminates Minimum Trading Commission to Boost Market Activity
In a strategic move to enhance market liquidity and attract a broader spectrum of investors, the Qatar Stock Exchange (QSE) has announced the removal of its minimum trading commission of QR30. Effective March 16, 2025, this initiative replaces the previous minimum with a fixed proportional commission rate of 0.00275, with no minimum threshold.
Empowering Investors and Reducing Costs
The primary objective of this change is to empower investors, particularly retail investors, by reducing transaction costs and broadening market access. By lowering these costs, the initiative is expected to encourage more frequent trading, improve market transparency, and enhance the overall investment experience. This aligns with Qatar’s Third National Development Strategy (2024-30) and the Third Financial Sector Strategy (3FSS), both aiming to foster sustainable economic growth by creating an inclusive and dynamic investment environment.
Boosting Market Liquidity and Competitiveness
The revised commission structure is anticipated to boost market liquidity, attract a more diverse investor base, and enhance the overall efficiency and competitiveness of Qatar’s financial market on both regional and global scales. By removing the minimum trading commission, investors now have greater flexibility in executing their trades, fostering a more attractive and competitive investment environment, and supporting the sustainable growth of Qatar’s financial market.
Alignment with Global Best Practices
This decision aligns with global best practices and represents a significant milestone in the development of Qatar’s financial sector. The removal of the minimum commission is anticipated to increase daily trading volumes, as investors will have the flexibility to execute smaller transactions without concerns over cost barriers. Additionally, this change provides greater incentives for brokerage firms, supporting their ability to attract new investors and diversify their client base.
Continuous Efforts to Enhance Market Efficiency
The QSE’s move comes as part of its ongoing efforts to enhance market liquidity, stimulate trading activity, and strengthen market competitiveness. The exchange reaffirms its commitment to market development through strategic initiatives and regulatory enhancements that drive liquidity, promote investment diversification, and elevate investor engagement, all in alignment with QSE’s strategy (2024-30).
Recent Initiatives to Modernize Qatar’s Financial Market
In addition to the removal of the minimum trading commission, the QSE has implemented several initiatives to modernize Qatar’s financial market:
- Shortening the Settlement Cycle: In collaboration with the Qatar Central Bank and the Qatar Financial Markets Authority, the QSE reduced the settlement period for transactions from three business days (T+3) to two business days (T+2), effective January 2, 2024. This change enhances the efficiency of Qatar’s capital market and aligns with global best practices.
- Introducing a New Electronic Trading Platform: The QSE launched a high-performing trading platform built on advanced technology used by many global capital markets. This platform provides innovative, robust, and scalable solutions, aligning with the advanced financial market technologies utilized by the London Stock Exchange Group.
- Expanding Eligibility for Trading Activities: The QSE amended the list of securities eligible for market making, liquidity provision, margin trading, and covered short-selling activities, making more companies eligible. This amendment aligns with the semi-annual review of the QSE indices and aims to boost market liquidity and attract more investors.
- Enhancing the Liquidity Provider Scheme: The QSE introduced new amendments to the Liquidity Provider (LP) Scheme, particularly concerning performance evaluation criteria for liquidity providers. These amendments aim to increase liquidity and trading, attract more investors, and enhance the competitiveness of the Qatari market.
Conclusion
The removal of the minimum trading commission by the Qatar Stock Exchange marks a significant step toward enhancing market efficiency, attracting a diverse investor base, and aligning with international best practices. Coupled with other recent initiatives, such as shortening the settlement cycle and introducing advanced trading platforms, Qatar’s financial market is poised for sustainable growth and increased competitiveness on the global stage.
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