India’s largest financial exchange has finally started charging clients commission on currency futures contracts.
Currency derivatives trading began in India in August, 2009. The NSE was the first player and two others MCX-SX and USE entered the market later.
However, no charges were being levied since inception to boost demand and volumes.
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The MCX-SX will levy a charge of up to Rs 1.10 per lakh of the Average Daily Traded Value, a similar amount issued by NSE.
The daily average volume of currency derivatives traded on NSE in August is Rs. 24,920.46 crore. MCX-SX’s trading volume is Rs. 28,574.55 crore and that of USE, the newest entrant, is Rs. 16.66 crore.
The zero commission rate has created alot interest in the new products, RBI is faced with resident indians trying hard to trade in global spot FX markets however local laws and regulations do not permit this.