MCX-SX welcomes NSE decision to charge for currency trading

MCX Stock Exchange today welcomed a decision by its rival bourse National Stock Exchange (NSE) to levy a charge for currency derivatives market.

"This is a very positive development for the currency derivatives market and would encourage healthy competition. We welcome this move by NSE to implement the decision of CCI," MCX-SX MD and CEO Joseph Massey said in a statement.

The comments came soon after NSE announced its decision to start levying charges for currency derivatives trading, where services have been free ever since its commencement in August 2009.

Currently three bourses NSE, MCX-SX and United Stock Exchanges are present in this business and none of them are levying any charge.

Sources said that MCX-SX would soon decide on its transaction charges. No immediate comments could be obtained from United Stock Exchange.

MCX-SX has previously said that it was not being able to levy a charge despite suffering huge business losses, as NSE was not charging for the product.

MCX-SX had approached Competition Commission with its complaint and the competition watchdog in late June pronounced NSE guilty of abusing its dominant market position and asked it to stop subsidising its services for the benefit of competition.