MCX Cuts Transaction Charges On Futures Contracts Of All Commodities

MCX cuts transaction charges to push up volumes 
The Multi Commodity Exchange (MCX), India's biggest exchange in terms of volumes, has cut transaction charges on futures contracts of all commodities effective Wednesday, in a bid to push up battered volumes.

Volumes at the MCX fell 39 per cent to Rs 76 trillion in the first ten months of the fiscal year beginning April 2013, as investors lost confidence in the exchange after a payment crisis at its spot exchange and restrictions on import of gold, triggering calls among industry participants to revive sentiment.
Transaction charges in precious and base metals and energy contracts have been cut to Rs 2.10 from the earlier Rs 2.5 for every Rs 1 lakh of turnover for members generating an average daily turnover of up to Rs 3.5 billion, and Rs 1.40 per Rs 1 lakh on incremental turnover above Rs 3.5 billion, the company said in a statement.
"Cost of transaction will come down for day traders, so it is a good move. This will help in day traders making multiple and frequent transactions," said Harish Galipelli, vice-president research with Inditrade Derivatives and Commodities.
The bourse has also slashed transaction cost on agricultural commodities by 70 per cent.
For agri-commodity contracts, MCX said it has reduced the fee to Rs 0.75 for every Rs 1 lakh of turnover for members generating monthly average daily turnover volume of up to Rs 200 million, and Rs 0.50 per Rs 1 lakh on incremental turnover above Rs 200 million.
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