The Nasdaq Stock Market Inc. has slashed its listing fees for closed-end funds on the NASDAQ National Market.

The entry fee for listing a closed-end fund on the national market is now US$5,000, a decrease from a range of US$100,000 to $150,000. Annual fees now range from US$15,000 to $75,000, depending on the number of total shares outstanding. Annual fees may not exceed US$75,000 per fund family. Prior to the changes, each fund listed on Nasdaq was assessed a separate annual fee and the range for annual fees was US$24,500 to $75,000.

The firm says that this development is part of its plan of continuing innovation and developing the ability to tap new opportunities in alternative asset classes. “The new fee schedule has substantially lowered fees payable by closed-end funds,” said Bruce Aust, executive vice president of Nasdaq’s corporate client group. “These lower fees permit Nasdaq to compete more effectively for listings with other markets and we expect this more intense competition to benefit investors. Nasdaq is a superior marketplace for closed-end funds and other asset classes, offering superior pricing and liquidity and faster executions and tighter spreads.”

Nicolas Bornozis, president of Capital Link, a financial services company that specializes in closed-end funds, commented, “Nasdaq should be commended for adopting a separate and lower fee structure for closed-end funds. This adds a new competitive dynamic to the closed-end fund industry and will enable funds to conduct their business in the most cost-effective way.”