The annual fees are being reduced following client feedback. The fees were seen to be too expensive according to Euronext's clients. This is likely to encourage more ETFs to be introduced to the market.
The new scheme consists of reducing an annual Assets Under Management (AUM) fee as well as an Average Daily Volume (ADV) discount per ETP.
Value of total shares outstanding up to €100m remains the same, having a fixed fee of €1,500. Value over €100m will now have an annual fee of 0.25bps, reduced from its former fee of 0.3bps. The total annual fee cap will also be reduced, from €18,000 to €13,500.
|Value of Total Shares Outstanding||Former Annual Fee||New Annual Fee|
|Up To €100m||€1,500||€1,500|
A discount for each product will be applied depending on the ADV per ETP. The discounts range from 40 to 60 per cent depending on which ADV percentile band the ETP falls in.
|Lower Band||Upper Band|
|Band 1||50||60||40 per cent|
|Band 2||60||70||45 per cent|
|Band 3||70||80||50 per cent|
|Band 4||80||90||55 per cent|
|Band 5||90||100||60 per cent|