Updating of the fees charged by Euronext Securities Porto, to Financial Intermediaries and Issuers, as from 1 January 2023.
The consequences of the pandemic and the Russian invasion of Ukraine have prompted an inflationary spiral that has been taking place in Western countries, including Portugal. In the course of 2022, the inflation rate has been growing every month, having accelerated since February 2022. If the pandemic had already brought a major shortage of raw materials, the war in Ukraine caused an energy crisis with the consequent increase in energy prices, as well as substantially reducing the global supply of food, with significant global impacts in several areas of activity. The outlook for inflation in Europe and for global economic developments is uncertain, but inflation rates are expected to reach two digits in Europe.
In this geopolitical and economic context of inflationary pressure, Euronext Securities Porto has decided to change the price list to be applied to the services provided to Financial Intermediaries and the price list to be applied to the services provided to Issuers. It should be noted that, since 2005, Euronext Securities Porto has made significant price reductions for both Financial Intermediaries and Issuers. The occasional price increases made since 2005 have essentially affected securities that were exempt from maintenance fees. In 2017, following the price increase communicated by the ECB – European Central Bank, resulting from the use of the T2S platform, Euronext Securities Porto revised and consequently increased the prices related to settlement services.
Euronext Securities Porto continues to invest in updating its technology and in the talent of its human resources to support the needs of its clients, in addition to maintaining high levels of investment to face operational changes resulting from new regulations with an impact on Euronext Securities Porto’s activity and from European projects, namely those led by the ECB. In this context, it should be noted that, in the recent past, Euronext Securities Porto decided not to burden the Portuguese market by adapting its systems (which was substantial) to implement Settlement Discipline in the Portuguese market, as it was done by other European CSDs.
Throughout 2022, Euronext Securities Porto absorbed the increased costs (of suppliers, energy, and equipment), but due to the current economic and inflationary environment, it became necessary to share a portion of these cost increases with our clients.
Therefore, from 1 January 2023, the commissions charged by Euronext Securities Porto will be updated by 5.9%, which is well below the inflation rate forecast by the Portuguese government and international entities.
It was also decided not to increase the commissions on some products or services, such as:
- settlement of OTC instructions;
- maintenance and subscription / redemption of funds
- identification of holders and,
- T2S information.