NCDEX slashes transaction cost to attract participation

Exchange members will now have to pay transaction fee of Rs 2 for every Rs 1 lakh of turnover

The National Commodity and Derivatives Exchange (NCDEX), India’s second largest commodity derivatives trading platform, has slashed transaction charges to attract more participation on its exchanges.

From September 1, 2013, members who have an average daily turnover upto Rs 200 crore will pay a transaction charge of Rs 45,000 as compared to the earlier charge of Rs 62,500. This reduces their cost by almost a third. This is as a result of the revised structure of transaction charges announced by the exchange.

The exchange members will now have to pay a transaction fee of Rs 2 for every Rs 1 lakh of turnover and for average daily turnover above Rs 200 crore, a transaction fee of Re 1 for every 1 lakh of turnover will be charged. Till now, there was no slab for average turnover of upto Rs 200 crore. The minimum slab was at Rs 250 crore.

Samir Shah, MD-Incharge, NCDEX said, “The reduction in transaction charges is one of the many steps that we are taking in the interest of the market, which is going through challenging times. At NCDEX, our mission is to make it easier for customers to do business with us. This move is a natural progression towards achieving this objective.”

There has been a growing demand from the market to provide a favorable transaction charges structure, aimed at encouraging larger participation from retail customers. NCDEX believes this revised structure provides a level playing field to members and will encourage broader market participation while rationalizing their costs.