NSE cuts charges on currency futures to infuse more liquidity

Fee starts at Rs 90 per cr of traded value for incremental monthly turnover of up to Rs 1,000 crore

Looking to bring in more liquidity in derivatives, the National Stock Exchange (NSE) has significantly lowered transaction charges in currency futures.

The decision is expected to help in reducing trading and hedging costs for various entities, including small and medium enterprises.

The fee starts at Rs 90 per crore of traded value for incremental monthly turnover of up to Rs 1,000 crore in the currency futures and it comes down as turnover rises. The new rate is applicable on both active and passive trade.

Earlier, Rs 110 per crore transaction fee was levied on such contracts.

As per the new slab structure for currency futures, incremental monthly turnover of over Rs 1,000 crore to up to Rs 2,000 crore will attract Rs 80 for every one crore of traded value.

On monthly turnover of more than Rs 2,000 crore to at least Rs 3,000 crore will attract Rs 70 for every one crore of traded value, while the same for over Rs 3,000 crore would attract transaction charges of Rs 35 for every one crore of traded value.

Earlier, the exchange used to levy a fee of Rs 30 per crore of traded value on monthly turnover of over Rs 35,000 crore.

"It has been decided to revise the transaction charges for currency futures, with effect from August 1, 2017," National Stock Exchange (NSE) said in a circular.

The move is based on feedback received from the market and is aimed at improving the liquidity in the currency derivatives segment, it added.