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After exempting trades on its currency derivatives platform from any transaction charges for a year, BSE will begin levying a fee from December.
But the charges, Rs 2 per 10 million of turnover initially and Rs 10 per 10 million by October 2015, would still be only a small fraction of those levied by National Stock Exchange (NSE) and MCX Stock Exchange for currency derivatives. BSE launched its currency derivatives platform in November. The NSE and MCX-SX began charging trades in August 2011 after an order from the Competition Commission of India.
Interestingly, BSE's decision to levy transaction charges on trades in currency derivatives comes within days of an August 4 order from the Competition Appellate Tribunal, which upheld the CCI order against National Stock Exchange (NSE).
In 2011, the competition watchdog had found the NSE guilty of abusing its dominant market position and adopting unfair trade practices in currency derivatives trading by not charging for trades in currency derivatives segment. The NSE had later challenged the CCI order before Compat while it has said it would also appeal against the Tribunal directive.
