The new billing model follows a consultation with market participants, advisory bodies and regulators. “Since our last change in fee structure, the market has evolved drastically and we have adopted the new model to adapt to these changing circumstances,” said Anthony Leibrandt, manager of equity derivatives trading at JSE in Johannesburg.

While the exchange acknowledges that a mechanism will always be needed for reporting bilaterally agreed trades to the exchange, as a regulator it also has to ensure the end customer gets the best price.

This can only be guaranteed, JSE believes, if all prices are visible to all market participants at all times. It therefore wants to encourage price making on the central order book.

Under the new fee structure, the market maker will get the booking fees for each transaction as a 100% rebate, meaning that effectively it pays no fee to the stock exchange.