Starting at new-year, VP Securities will offer a new, simpler price structure for exchange traded products (ETP). Could you get it less expensive?

VP Securities is introducing a new, simpler price structure for exchange traded products (ETP). The new structure will go into effect on 1 January 2020, and includes reductions to the prices for issuance, settlement and closing of warrants, certificates, turbos and mini-futures. For example, issuers will be able to open and close at a total cost of DKK 75 (EUR 10). With these reductions, VP will offer the lowest price in the Nordic region.

A foundation for market growth

“Over the past two years, the number of ISINs issued with VP Securities has increased by 55 percent. This marked increase, coupled with the size of the ETP market in other Nordic countries shows that there is large potential for further growth,” comments Morten Skanning, Senior Product Manager at VP Securities. “To encourage further market growth, we have decided to lower our prices.”
This pricing lowers one of the market barriers, which meets customer and market demands. “By lowering our prices, we can respond to our clients’ request for a higher incentive to issue a larger and more diverse selection of investment products,” Morten Skanning explains. “We hope that this will pave the way for more instruments on the Danish and Nordic markets, so investors can choose from a wider range of instruments based on indices, single shares, commodities and currencies.”

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Simple price structure and a simple process

This simpler price structure reflects VP’s overall mindset that issuing through VP should be a straightforward process. “We have ongoing initiatives to make it easy to issue with VP. Today, issuers can choose the process that suits them, regardless of the currency. New instruments can be opened via a manual, semi-manual or fully automated process,” says Morten Skanning, and adds that the new price structure is by no means the final step in VP’s quest to simplify the issuance process. “Although, we have taken some important steps to make life easier for our clients, we still have several ideas for improving our services further.”

New pricing structure in detail

Issuance cost: DKK 75
VP settlement instruction cost: DKK 1.70 per side*
Closing without outstanding holding: DKK 0
Closing with outstanding holding: DKK 350 + DKK 1.20 per payment
*T2S cost not included.