Shanghai Gold Exchange to cut trading fees

The Shanghai Gold Exchange (SGE) will cut trading fees for several of its precious metals contracts to reduce transaction costs, it said on Monday, a move seen aimed at keeping its fees competitive after its rival bourse cut margins last week.

SGE will cut transaction fees for its gold forward contract to 0.025 per cent from 0.03 per cent, and charges for its gold spot contracts to 0.04 percent from 0.045 percent, effective from March 1.

Trading fees for its silver spot and forward contracts will fall to 0.025 per cent from 0.03 per cent, while its platinum contract fees will be reduced to 0.045 per cent from 0.05 per cent.

The move comes just a week after the Shanghai Futures Exchange (SHFE), China’s biggest metals bourse, said it would lower trading margins for gold and revise its tiered margin system from March 1 to make it cheaper for investors to trade.

In a bid to boost trading volumes, the SHFE has also said that it was looking to launch silver futures and also introduce night trading for gold.

Both bourses count on Chinese banks, a handful of foreign institutions and futures brokerage as its members.