The National Stock Exchange of Australia (NSX) announced on Friday that it will lower its trading fees to 0.1 basis points per buy and sell beginning April 2.

NSX Chief Executive Officer Emlyn Scott said the reduction, at the current rate of $5 per trade, represents a 90 per cent cut on average current fees. She said the new fee was changed to create better value for brokers and investors on the NSX.

Ms Scott added that the fee cut is just one of the changes that Australia's second largest stock exchange would make. NSX will also launch a direct Internet trading access for individual investors through the use of a trading software from Paritech, she disclosed.

The NSX has 120 securities listed with a combined market capitalization of $4 billion. It has 18 participating brokers and 33 nominated adviser firms.

To indicate the growing importance of the NSX in the Australian bourse market, contract medical company IQnovate Limited (NSX: IQN) signed a preliminary agreement to provide commercialisation services for JH Biotech Australasia since it listed with the bourse.

The deal includes pharmaceutical grade products including nutraceuticals. The two firms plan to finalise a binding commercial agreement not later than Sept 30.

Under the deal, IQNovate would focus on the development of novel forms of Omega 3, vitamin C, hydrosed fibres and chelated minerals. The company's mission is to provide outsourced biopharmaceutical services to clients.

IQNovate founder and Chief Executive Officer George Symmalis said the JH Biotech agreement is a landmark for IQNovate because it is the first agreement since it listed publicly with NSX on December 2011 with a market capitalization of $9.74 million. He added the firm plans to expand in the Asia-Pacific region.

JH Biotech is based in California, with its Asia-Pacific operations specialising in plant, animal and human nutrition.

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