Interest Rate Futures: NSE to continue levy of transaction charges for two more months

K. R. Srivats  New Delhi | Updated on January 24, 2018 Published on May 29, 2015

The National Stock Exchange (NSE) has decided to continue the existing transaction charges in interest rate futures (IRFs) for two more months.

Accordingly, the existing transaction charges -- which were earlier valid till May 31— will now be continued for a further period of 2 months — i.e from June 1, 2015 till July 31, 2015.

Currently, NSE is levying the transaction charges of Rs 0.10 per lakh of volume in the IRF segment. Further, the contribution towards NSE Investor Protection Fund Trust is payable by the trading members @0.000005% (i.e. Rs.0.005 per lakh of the turnover) on each side.

Meanwhile, the NSE on Friday launched IRFs based on the new 10-year Government bond maturing on 2025.

On the first day, traded value on the IRF with the new underlying (7.72 per cent yield Government bond maturing in 2025) stood at ₹ 1907 crore, out of total traded value in IRFs of ₹ 3971 crore.

The Government had last Friday introduced a new 10-year bond in the market that will mature in 2025.

As much as Rs 9,000 crore was mopped up in the first auction conducted last Friday for this 10-year paper, which has replaced the current security (8.4 per cent coupon), maturing in 2024, as the new benchmark.

In India, exchange traded IRFs are standardised contracts based on an underlying Government of India bonds.

An IRF contract is an agreement to buy or sell a debt instrument at a specified future date at a price that is fixed today.

NSE currently enjoys market share of close to 90 percent in the exchange traded IRF market

Published on May 29, 2015
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