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:   
|
|
|
|
|
|
|
|
|

Commexes to cut transaction fee on non-deliverables

Aim to grab MCX share in for non-agri commodities

Aim to grab MCX share in for non-agri commodities 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.
image

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

Recommended for you

Advertisements

Quick Links

Market News

Brent crude steadies above $65

Brent crude reversed early losses to steady above $65 on Monday as signs that US shale output may have started to decline offset the effects of ...

Today's picks- 27 April 2015

Nifty, Bank Nifty, Cairn & Bharti Airtel

Pulses, oilseeds trade gets relief from stock limits in Maharashtra

However, prices are likely to rise, given the possibility of stock building by large traders

CME, ICE plan exchanges at GIFT City IFSC

Looking to partner exchanges that have shown interest

BSE moves 122 cos on Vadodara SE to dissemination board

Among the vanishing companies are Addi Commercial Enterprises, Anand Dairy, Baroda Dying, Gujarat Apparels, Zen Shaving and Rainbow Housing ...

 

Back to Top