The Hollywood Stock Exchange has been open for 28 years, and we appreciate everyone who started an account and continues to trade to this day. There have been many though who have come and gone, leaving their accounts dormant. Although HSX has had its ups and downs, the economy has only grown and grown to a market value of H$20.5 Trillion, with H$16 Trillion in cash. Much of the uninvested cash lies in dormant accounts, which continue to accrue daily interest. In order to curtail their growth, HSX will be ending daily interest in 2025.
HSX wants to ensure that accounts remain active and engaged in the market. A dynamic HSX offers the best possible experience for all traders. To encourage more trading and stimulate the market, HSX is introducing an inactivity fee. If an account does not have a Buy, Sell, Short or Cover transaction for 30 days, an inactivity fee will be assessed at 1% APR of the uninvested Cash Balance. To avoid the inactivity fee charge, simply make at least one trade every 30 days.
Think of the inactivity fee as a negative daily interest. For a portfolio with a H$2M cash balance, that comes out to:
-1% * H$2,000,000 = H$20,000 / 365 = -54.79 per day
As the cash balance decreases, so would the daily interest. The inactivity fee over a year would actually be less than -H$20,000 if an account was inactive for 365 days.
We recognize that this is a significant change, and we hope that in time, you'll understand and appreciate the positive benefits of a more active market. It may even be easier to pass dormant accounts and move up the Leaderboard.
Here’s the schedule timeline:
On December 31st, the Interest Rate will be set to 0% and the daily interest deposit will cease.
On January 1st, an Inactivity Fee will be set to -1%. However, your account will not be assessed the negative daily interest if a trade has been made during the preceding 30 days.
So login to your portfolio and make a trade today!