Commodities

NCDEX cuts transaction charges to attract volumes

Our Bureau Mumbai | Updated on February 19, 2014 Published on February 19, 2014

Samir Shah, MD & CEO, NCDEX

Days after commodity market regulator Forward Markets Commission allowed differential transaction fees, agriculture-focused commodity exchange NCDEX has rationalised transaction charges for different commodities, in order to attract trade in illiquid contacts. The changes will come into effect from Wednesday.

The exchange divided commodities traded on its platform into list A and B.

Members trading in list A will now pay fee of ₹1.95 for every ₹1 lakh of turnover for monthly average daily traded value up to ₹200 crore and on the incremental monthly average daily traded value, a transaction fee of ₹1.30 for every ₹1 lakh of turnover will be charged. This will result in lower fee for member trading up to ₹200 crore and marginally higher for those who record over ₹200 crore turnover.

The commodities in list A include: Barley, Castor Seed, Chana, Coriander, Cotton Seed, Cotton Seed Oil Cake A Kola, Guar Seed, Guar Gum, Gur, Jeera, Kapas, Maize, Kharif Maize, Rabi Rmseed, Shankar Kapas, Soyabean, Soyameal, Refined Soya Oil, Sugar M200, Turmeric and Wheat. Members trading in list B commodities will have to pay a reduced transaction fee of ₹ 0.40 for every ₹1 lakh of turnover for monthly average daily traded value up to ₹50 crore and on the incremental monthly average daily traded value, a transaction fee of ₹0.30 for every ₹1 lakh of turnover will be charged. This would make it extremely cost effective for participants, said the exchange. List B commodities consist of: Brent Crude Oil, Crude Oil Copper, PVC, Gold, Gold Hedge, Gold Hedge 100 Grams, Silver, Crude Palm Oil, RBD Palmolein, Rubber, Steel Long.

Samir Shah, MD & CEO, NCDEX, said, “Every commodity is at a distinctly different stage in the maturity cycle and introducing these commodity specific transaction charges will help in making it cost effective to trade participants.”

Published on February 19, 2014
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