F&O transaction fee revision sends MCX shares to hit record high on Sep 25

MCX share price: The futures contract on MCX will invite a transaction fee of Rs 2.1 per lakh of turnover value, while the options contract will be charged Rs 41.8 per lakh of premium turnover value

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MCX share price: Multi Commodity Exchange of India's (MCX) share price gained 2.3 per cent on Wednesday, September 25, and logged an all time high of Rs 6,018.75 per share on the BSE. The stock moved northwards after the commodities exchange platform revised its futures and options contracts' transactional fee.  

At around 9:52 AM, the MCX share price was up 1.25 per cent at Rs 5,951.5 per share on BSE. In comparison, the BSE Sensex traded 0.06 per cent lower at 84,965.33 around the same time.

MCX in an exchange filing said that the futures contract will invite a transaction fee of Rs 2.1 per lakh of turnover value and the options contract will be charged Rs 41.8 per lakh of premium turnover value. The revised fee will be applicable from October 1, 2024. The latest update changes MCX’s previous tiered fee system to a fixed transaction fee structure, following guidelines from the Securities and Exchange Board of India (Sebi).

The move comes after the Sebi recently directed stock exchanges and other market infrastructure institutions (MIIs), including MCX to discontinue the practice of levying slab-wise fee structures. MIIs were directed to charge uniform fees, irrespective of the size of market participants, essentially the brokers.

On the financial front, the company's profit after tax (PAT) stood at Rs 110.92 crore in the first quarter of the financial year 2024-25  (Q1FY25)  against Rs 87.87 crore recorded in the previous quarter, up 26.2 per cent sequentially.

The firm’s revenue rose 29.4 per cent quarter-on-quarter (Q-o-Q) to Rs 234.4 crore in Q1FY25 from Rs 181.1 crore in the March quarter of FY24.

MCX’s earnings before interest, taxes, depreciation, and amortisation (Ebitda) witnessed a 30 per cent jump on a Q-o-Q basis at Rs 132.6 crore  in Q1FY25  against Rs 102 crore in the preceding quarter.

The firm’s margin, however, witnessed only a slight rise to 56.6 per cent in the June quarter of FY25 from 56.3 per cent in the previous quarter.

The company's average daily turnover for Q1FY25 stood at Rs 1.72 trillion. The total traded clients in futures and options on the exchange saw a growth of 6.4 per cent, reaching around 0.56 million during Q1FY5 against 0.53 million clients in the previous quarter and 0.39 million in Q1FY24.

In the past one year, shares of MCX have gained 208.8 per cent against BSE Sensex's rise of 28.6 per cent.