NCDEX liberalizes Algo norms to attract more participation

As per the revised norm, the exchange has waived annual recurring charge for the first three ATS ID subscribers of each member fo the exchange platform

Faced with a drastic decline in business, the National Commodity& Derivatives Exchange (NCDEX), India’s largest agri – centric commodity derivatives trading platform, has liberalized its algo trading norm to catch traders’ active interest in this segment.

As per the revised norm, the exchange has waived annual recurring charge for the first three ATS ID subscribers of each member of the exchange platform. While the fourth member onwards, the exchange would charge Rs 50,000 as annual recurring charge from each subscriber to algo / high frequency trade service. Other charges continue to remain unchanged.

With this, however, ATS – developed in house or taken from non-empanelled ATS vendor would attract Rs 50,000 as one time charge in addition to Rs 50,000 as annual recurring charge per ATS ID per member.

For the ATS – taken from exchange empanelled ATS vendor, the one-time charge has been fixed a “nil” as earlier, but the annual recurring charge per ATS ID per member stands at Rs 50,000.

For empanelment of an ATS vendor, however, one time charge works out to Rs 10,00,000 in addition to annual recurring charge per vendor at Rs 250,000.

NCDEX has been witnessing a consistent fall in its market share over the last one year.

Data compiled by the Forward Markets Commission (FMC) showed NCDEX’s turnover declined to Rs 48,868.90 crore in the second fortnight of April 2013 as compared to Rs 67,806.08 crore in the corresponding period last year.

The decline in NCDEX turnover was recorded at a time when overall turnover in commodity futures witnessed a sharp jump of 28% from Rs 1,152,471.83 crore in April 2012 to Rs 1,477,303.87 crore in April 2013.