NSE Extends Fee Discount for Currency Futures

Mumbai: National Stock Exchange (NSE) has extended a discount of upto 50 per cent in transaction charges for trading on its currency derivatives platform and in equity options segment for two more months.

The bourse had in November announced concession in transaction charges for currency futures trade and equity options segments. These were applicable from December 1 and continued till January 31, 2015.

In two separate circulars, NSE has decided "to extend the same for a further period of two months i.e. from February 1, 2015 till March 31, 2015".

The moves are part of NSE's effort to improve the liquidity in the currency futures and equity options segments. In equity options, NSE will give a flat concession of 40 per cent in the transaction charges levied on the incremental billable turnover, or premium value, above Rs 1,000 crore in a month for a period of two months beginning February 1.

In the currency futures segment, a discount of 30 per cent in the transaction on turnover between Rs 300 crore and Rs 500 crore in a day and 50 per cent on turnover of above Rs 500 crore will continue for another two months.

NSE has been facing competition from rival BSE on these segments. BSE's market share has been rising consistently in the currency derivatives market over the recent months on the back of implementation of latest technology solutions, lower costs and faster trades.

Besides, NSE has also decided to extend the liquidity enhancement scheme for Exchange Traded Funds (ETFs) on its indices till June 30.

The exchange had introduced the scheme in ETFs effective December 15 last year till February 28, 2015 on a pilot basis.