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| Edited By: |Source: DNA |Updated: Mar 18, 2018, 06:22 AM IST
MCX Stock Exchange (MCX-SX), the newest equity bourse, has announced transaction charges for the options segment that are 50% cheaper than the market leader, National Stock Exchange (NSE).
The options segment accounts for nearly three-fourths of the total turnover on the equity segment.
Interestingly, the BSE still has the lowest options charges of the three.
MCX-SX will charge Rs25 per lakh of premium on the options segment. The NSE, which accounts for 83% of the total equity market transactions in terms of value, charges Rs50.
BSE, Asia’s oldest exchange, makes use of a structure where it incentivises people to place new orders rather than complete a transaction by matching an existing order.
Passive orders are defined as orders that are already existing in the order book at the time of matching (trade taking place). These are not charged a transaction fee.
Active orders are defined as orders that are matched against the orders already existing in the order book at the time of matching (trade taking place). These are charged Rs0.50 per lakh of premium on the options segment.
The new kid on the block has also announced a cut of up to 50% for high volume generators in the cash market.
The NSE charges Rs3 per lakh of turnover for its high rollers (which it defines as those who generate volumes in excess of Rs15,000 crore in a month).
MCX-SX has a lower bar for its lowest fees. It announced that it will charge Rs1.5 per lakh of turnover for those who generate in excess of Rs5,000 crore.
At the other end of the band, NSE charges Rs3.25 for those generating Rs1,250 crore or lower in turnover. MCX-SX will charge Rs2 per lakh of turnover for members who generate up to Rs1,000 crore in turnover in the cash segment-around 38% cheaper for the smaller players.
The BSE charges Rs2.25 per Rs1 lakh of turnover on passive orders in the cash segment and Rs3.25 per Rs1 lakh in case of active orders.
In the futures segment, the charges are around a third lower.
MCX-SX charges Rs1.0 to Rs1.2 per lakh of traded value in a month.
The NSE charges from Rs1.75 to Rs1.90.
The BSE charges Rs0.50 per lakh of turnover on the futures segment.
Jignesh Shah, vice-chairman of MCX-SX, said it is not in favour of extending timings in the equity market in an attempt to quell speculation that the new exchange was looking to stretch market timings beyond the current schedule.
