Business Standard

Commexes to cut transaction fee on non-deliverables

Aim to grab MCX share in for non-agri commodities

Related News

The flexibility to fix transaction charges has sparked a fight among the futures exchanges to grab market share, a majority held by the Multi Commodity Exchange (MCX).

The exchanges have started working on reducing the charges on non-agricultural commodities contracts like and energy’s that are cash settled and non-deliverable. Most important, these are 86 per cent of the accumulative turnover of all exchanges. The accounts for 90 per cent of the turnover in this segment.

The commodities markets regulator, Forward Markets Commission, on February 13 allowed different transaction fees on metals and energy’s contracts. The is understood to have asked exchanges to implement reduced charges for incremental volumes.

Also, the difference between the higher and lower slab should not be 50 per cent more than the lower one. Samir Shah, managing director and chief executive officer (CEO), National Commodity and Derivatives Exchange (NCDEX), said, “We are reviewing our turnover charges further and will be formulating plans soon.”

“Most competition would be between the MCX and NCDEX,” said Ashok Mittal, CEO, Emkay Commotrade. Smaller ones like Derivatives and Commodity Exchange, anchored by the Kotak group, are preparing to be competitive. “We  will follow the competition according to a suitable time,” said Dilip Bhatia, CEO of Ace. An email to the MCX remained unanswered.

The NCDEX, National Multi Commodity Exchange, Ace, Indian Commodity Exchange and Universal Commodity Exchanges have introduced many contracts in non-deliverables but have not succeeded in attracting participation.

Read more on:   
|
|
|
|
|
|
|
|
|

Read More

Aluminium futures rise by 0.57%

At the MCX, aluminium for delivery in February traded up by 60 paise to Rs 106.55 per kg in business turnover of 87 lots

Quick Links

 

Market News

NSE issues guidance on disclosure norms

Norms pertain to disclosure of price sensitive information on events to ensure investors can take timely decisions

Markets flat; Technology stocks surge

The 30-share Sensex is down 40 points at 26,590 and 50-share Nifty has lost 13 points at 7,952.

Videocon Industries gains as subsidiary considers IPO

Videocon Industries has gained 2.5% on BSE on the reports about Videocon d2h considering a pre-IPO placement

Kerala will use rubber based bitumen for roads

Chief minister Oommen Chandy announced this today after a cabinet meeting

Jubilant FoodWorks gains 3.5% on expanding presence in India

Domino's Pizza inaugurated its first restaurant in Gorakhpur and Udaipur which are a popular tourist destinations.

Back to Top