Leading bourse the National Stock Exchange (NSE) today said it had decided to levy charges for currency derivatives trading -- a move that follows a Competition Commission of India's (CCI) order holding it guilty of abusing its dominant position with this "unfair" pricing.
The charge would be levied by the exchange with effect from August 22.
However, the exchange would still challenge the order of CCI, which on June 23, 2010 imposed a Rs 55.5 crore fine on the country's largest bourse for abusing its dominant market position and asked it to stop the "unfair" pricing practices.
In its order passed pursuant to an inquiry after a complaint filed by rival exchange MCX-SX, CCI said NSE's move towards subsidising its services was at the cost of rivals.
NSE said it had earlier waived the charges for the benefit of the market and the consumers, and all market players -- including exchanges, members and consumers have benefited from the move.
While NSE would be challenging the CCI order, it decided to levy the charge out of respect for the Commission. The CCI had felt that NSE should levy a charge and we are abiding by that suggestion, an NSE official said, but asserted that the exchange would still challenge the CCI order.
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The NSE commenced trading in currency derivatives on August 29, 2009, becoming the first Indian bourse to offer this product for investors. However, it has not been levying any charge for this product till now.
However, the exchange has now decided to levy a charge for currency derivatives with effect from August 22.
Trading in currency futures segment has seen a rapid growth ever since its launch and the daily average trading volume has crossed Rs 18,000 crore, from a turnover of Rs 291 crore in the first day of trading on August 29, 2009.