The recent inclusion of commission charge on currency futures traded on MCX-SX, NSE and United Stock Exchange havent been welcomed by traders as volumes have declined by 40%.
The charge came in to place after an order from the ‘Competition Commission’ which found the National Stock Exchange guilty of abusing its dominant position in the market.
MSX-SX Indias leading commodity bourse has been trying to charge clients since inception of the currency futures contract was launched however National Stock Exchange had offered zero commission.
The charge has back fired on both exchanges as volumes have reduced dramatically.
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NSE and MCX-SX used to see daily trades of Rs 20,000-25,000 crore each. But on Monday, currency derivatives of Rs 12,000 crore were traded.
New charges and fees tend to have an initial set back on volumes, a STT (securities transaction tax) was imposed on equity trade which also saw a decline in volumes.
The decline in volumes could re-trigger Indian investors interest in back in the forbidden Global FX markets.