 "No transaction fee on cross currency F&O derivatives trade, says NSE")
The exchanges — BSE and NSE — have launched trading in cross-currency futures and options (F&O) derivatives from today. 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.
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"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," NSE said in a circular issued late night yesterday.
The announcement comes after NSE, last week, received markets regulator Sebi's approval for introducing cross-currency derivatives on pairs such as Euro (EUR)-US Dollar (USD), Pound Sterling (GBP)-USD and USD-Japanese Yen (JPY).
Additionally, the exchange has also received permission to introduce option on EUR-INR. GBP-INR and JPY-INR in addition to existing USD-INR.
Under the new contracts, stock brokers, domestic institutional investors, FPIs and clients, are allowed to take positions in the exchange traded cross-currency futures and option contracts.