Tashkent, Uzbekistan (UzDaily.com) — The Uzbek Republican Currency Exchange (UzRVB) is playing an active role in the development of Uzbekistan's capital market, creating favorable conditions for trading participants.

As part of the development strategy for 2024-2028, the exchange is optimizing its tariff policy, revising the commission fees for transactions involving government securities and foreign exchange instruments, introducing several changes aimed at optimizing dealer costs and increasing market liquidity.

One of the key results of the tariff optimization is a significant reduction in the commission for currency swaps: from 0.01% to 0.0008% of the transaction amount. This change is aimed at creating more favorable conditions for trading foreign exchange instruments and stimulating dealer activity.

New Tariffs for Government Securities Market

A central element of the reform is the introduction of a flexible tariff system for transactions with government securities (GS) issued by the Ministry of Economy and Finance of the Republic of Uzbekistan. Dealers can now choose from three tariff plans for primary market (auction) trading, depending on their trading volume and strategy.

Notably, the tariff plans include both a base rate and a "reduced" commission rate that encourages activity in the secondary market and the interdealer REPO market. Prior to the tariff reforms, the commission fee for primary market (auction) transactions was 0.02%, while on the secondary market it was 0.015% of the transaction amount.

The New Tariff Plans are:

- BASIC: The base commission is 0.0012% of the transaction amount. If a dealer reaches a minimum volume of 750 billion soums in the secondary market and 4 trillion soums in the interdealer REPO market in one month, the commission fee for auctions in the following month is reduced to 0.0006%.

- PRO: The base commission is 0.0009% of the transaction amount, with a one-time fee equal to 1.1 BRV (Basic Reference Value). If the dealer reaches a minimum transaction volume of 850 billion soums in the secondary market and 6 trillion soums in the interdealer REPO market in one month, the commission for auctions in the following month is reduced to 0.00045%.

- MAX: The base commission is 0.0007% of the transaction amount, with a one-time fee equal to 2.5 BRV. If the dealer reaches a minimum volume of 1 trillion soums in the secondary market and 8 trillion soums in the interdealer REPO market, the commission for auctions in the following month will be reduced to 0.00035%.

In addition, the procedure for calculating commissions for Central Bank bond transactions has changed. The commission on GS auctions is now 0.0012% instead of 0.02%, and on the secondary market, it is 0.0075% instead of 0.015% of the transaction amount. These steps demonstrate UzRVB's commitment to supporting dealers by offering affordable and flexible conditions.

Benefits of the New System

This flexible tariff system offers dealers several key advantages:

- Choice: Each participant can select a plan that best fits their strategy and trading volume.

- Cost Reduction: The new system allows for optimized commission expenses as the volume of transactions increases.

- Stimulating Activity: The updated conditions are designed to encourage active participation by dealers, their investors, and the expansion of the GS market.

Changes in Commission Structure for Secondary Market Transactions

For dealers purchasing GS on the secondary market, changes have been introduced to the commission structure based on the time to maturity of the security. The new approach allows for reduced dealer costs and encourages active participation in trading by creating flexible conditions based on the remaining time to maturity of the GS.

If the time to maturity is less than 200 days, the commission will be minimal and calculated depending on the remaining days to maturity and the transaction amount. The maximum commission in this case will not exceed 0.0075% of the transaction amount, even for large volumes.

If the time to maturity is 200 days or more, the commission will be a fixed 0.0075% of the transaction amount.

Rashid Usmanov, General Director of UzRVB:  "The implementation of the new optimized tariffs reflects UzRVB’s desire to create a modern and efficient trading platform that meets international standards. The new rules aim to make trading on the exchange more transparent, convenient, and profitable for all market participants, thereby strengthening the position of the exchange both in Uzbekistan’s financial market and internationally."

UzRVB continues its mission to develop Uzbekistan's capital market by supporting dealers and providing more flexible conditions for successful operations. I am confident that these changes will provide additional incentives for active participation, thereby increasing liquidity and improving the efficiency of the country’s exchange system.