NSE to charge fee for currency derivative transactions
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The move and its impact on trading volumes will be keenly watched by rival exchange MCX-SX, which moved the Competition Commission of India and the capital market regulator Sebi, alleging NSE's "predatory pricing" strategies in the currency derivatives segment.
"NSE," according to an exchange official, "had waived off charges to benefit consumers and develop the market. It benefitted all players - exchanges, members and consumers."
"While we are challenging the Competition Commission of India order, we are are implementing its direction to levy charges out of respect for the commission," said the person.
In a circular issued on Friday evening, NSE has announced the transaction charges that will be levied on member brokers for all trades on currency futures and options.
At present, currency derivatives are the only products where brokers and investors did not pay transaction fee.
Other futures and options products with stocks and commodities as underlying carry transaction fee, which brokers recover from traders and investors.
Responding to the development, MCX-SX MD & CEO Joseph Massey said: "This is a very positive development for the currency derivatives market and would encourage healthy competition. We welcome this move by NSE to implement the decision of CCI."
NSE's decision had come as a blow to some of the other exchanges, particularly MCX-SX, which initially took up the matter with Sebi.
Later, it moved the competition watchdog after Sebi said predatory pricing was under the ambit of Competition Commission of India. More recently, CCI slapped a penalty of 55.5 crore on NSE for abusing its dominant position in the corporate debt sector. (PTI)
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