With an objective to facilitate better planning of transaction costs for its members, MSE has launched a Transaction Charge Package (TCP) structure, wherein members will now be able to choose a Transaction Charge Package based on their budget and usage at optimal cost. Accordingly, trading members will now have a choice of switching to the now launched TCP or continue with the Existing Transaction Charge (ETC).
Members opting for the TCP will have to identify and intimate to the Exchange in advance the slab that they would be agreeing to (p) for the next month. This has however had been relaxed for the month of January wherein members were allowed to intimate their choice for January 2019 by the 10th of the month. Once selected, a slab would be in force for the respective member till such member intimates the Exchange a change in his | her preference. Those who have not opted for the TCP slab structure will continue to be governed by ETC.
Irrespective of the choice, transaction charges for members will continue to be computed after the completion of the month as is being currently followed. The Monthly Turnover Limit (MTL) and transaction charges as per TCP will be applied only on the turnover in Currency Futures in USDINR, EURINR, GBPINR & JPYINR. For those opting the TCP transaction charges will not be applied on turnover in Currency Options, Interest Rate Futures and Options & Futures on Cross Currency Contracts.
The Exchange has set 7 different slabs under the TCP depending on the MTL from Rs 40 crore going up to Rs 2000 crore and above. The monthly transaction charges levied in these 7 slabs start from a minimum of Rs 1800 going up to Rs 80,000 for unlimited turnover limits. For turnover exceeding the MTL the Exchange will levy an additional charge based on per crore of turnover for every slab.
The new TCP structure will allow members the flexibility of deciding on the charges they wish to pay to the Exchange depending on their assessment of business transactions expected to be executed by them on a month to month basis.
The Exchange has set extremely competitive charges through this initiative which are lowest beyond a certain volume. As per the new plan, members can execute unlimited trades in CDS FUTURE by paying just Rs .80000/- per month. Further, trades in Options and IRFs are at no charge in all the slabs
Commenting on the development, Ajit Singh, VP and Head – Business and CSQ of MSE said “we have been getting feedback from the market participants where they seem worried about increasing transaction costs to hedge their exposures as being a major deterrent to participate on Exchanges. The new scheme is intended to encourage and support broader participation, by inviting all market participants to use the MSE platform and avail the benefits of ‘No Transaction Charges’ on Currency Options & Interest Rate Futures and extremely competent charges on Currency Futures.”
The Exchange is also working to gain traction in the equity segment, along with building state-of the- art Mutual Fund and SME platform to deepen relationship with its members and clients, by offering integrated solutions to their trading needs.
