BROKERAGE RULE

Press, Volume CV, Issue 30957, 13 January 1966, Page 14

BROKERAGE RULE

Aust. Exchanges May Change (N.Z. Press Assn. —Copyright) ; MELBOURNE, Jan. 12. I All Australian stock exchanges with the exception of Brisbane will meet tomorrow to consider changing the contentious minimum brokerage rule, which has been annoying many brokers and investors since the new brokerage scale was introduced last July.

In November the Brisbane Exchange broke with the Australian Associated Stock Exchanges over brokerage rates, giving the minimum charge rule as one of the reajsons for the move. Amendment Exchange officials said members would be asked to amend the rule so it would apply to orders of less than £5O rather than contract notes of less than £5O. They said this would eliminate any anomalies existing under the present rule, whereby brokers are obliged to charge minimum brokerage on all contract notes issued for less than £5O regardless of the size of the order.

The proposed new wording I for the rule is:— (When the total consideration ' i involved in an order is) 10 dollars or more and: less than 100 dollars, then! minimum brokerage of 2 dollars shall be charged. l Minimum Charge I When the total consideration involved in an order is) less than 10 dollars, then ) minimum brokerage of 1' dollar shall be charged. ! When more than one contract■ note is issued in respect! of an order to which minimum brokerage applies.' upon such subsequent ! contract notes shall appear the statement “minimum brokerage previously charged." These charges shall apply only when there is a single instruction given at the one (time to buy or sell on behalf of the one beneficial interest securities of the same class and paid-up value.