No fee on cross currency derivatives trade, says NSE

The National Stock Exchange (NSE) will not levy any transaction fee on the trades done in cross currency derivatives for three months starting today, in order to encourage active participation in such contracts.

The exchanges BSE and NSE - have launched trading in cross-currency futures and options (F&O) derivatives from Tuesday. The trading in such contracts would be available between 9:00 am and 7:30 pm.'

The move will help in direct hedging of foreign currency exposures as well as improving liquidity in existing currency contracts. "In order to encourage active participation in cross currency F&O contracts, it has been decided that no transaction charges will be levied on the trades done in cross currency F&O contracts... from February 27, 2018 till May 31, 2018," the NSE said in a circular issued late night Monday.

The announcement comes after the NSE, last week, received markets regulator Sebi's approval for introducing cross-currency derivatives on pairs such as euro-dollar, pound sterling -dollar and dollar- yen.