Indian FX Futures volumes 40% decline amid commission charges

The recent inclusion of commission charge on currency futures traded on MCX-SX, NSE and United Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term havent been welcomed by traders as volumes have declined by 40%.

The charge came in to place after an order from the 'Competition Commission' which found the National Stock Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term guilty of abusing its dominant position in the market.

MSX-SX Indias leading commodity bourse has been trying to charge clients since inception of the currency futures contract was launched however National Stock Exchange had offered zero commission.

The charge has back fired on both exchanges as volumes have reduced dramatically.

NSE and MCX-SX used to see daily trades of Rs 20,000-25,000 crore each. But on Monday, currency derivatives of Rs 12,000 crore were traded.

New charges and fees tend to have an initial set back on volumes, a STT (securities transaction tax) was imposed on equity trade which also saw a decline in volumes.

The decline in volumes could re-trigger Indian investors interest in back in the forbidden Global FX markets.

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