BSE allows no transaction fee on cross currency derivatives trade till August 2019
Leading stock exchange BSE has extended the time period for not levying any transaction fee on the trades done in cross currency derivatives for one year till August 2019, in order to encourage active participation in such contracts.
The decision has been taken after taking feedback from market entities.
The exchanges launched trading in cross-currency futures and options (F&O) derivatives in February. The trading in such contracts is available between 9:00 AM and 7:30 PM.
The move was aimed at helping in direct hedging of foreign currency exposures as well as improving liquidity in existing currency contracts.
Earlier, BSE had decided that no transaction charges will be levied on the trades done in F&O contracts on cross currency pairs (EUR-USD, GBP-USD and USD-JPY) till August 31, 2018.
"Based on the market feedback it has been decided to extend the same for a further period of one year from September 1, 2018 to August 31, 2019," BSE said in a circular Monday.
Under the contracts, stock brokers, domestic institutional investors, foreign portfolio investors (FPIs) and clients, are allowed to take positions in the exchange traded cross-currency futures and option contracts.
