Published On: Thu, Feb 27th, 2014

MCX Reduces Transaction Charges On Agri-commodities By 70%

MCX announced on February a substantial reduction in transaction charges of agri-commodities with an aim to reduce cost of trading for the agri commodity value chain participants, effective today. For agri-commodity contracts, MCX has reduced the fee to Rs. 0.75 for every Rs. 1 lakh of turnover for members generating monthly average daily turnover volume (ADTV) of up to Rs. 20 crore, and Rs. 0.50 per lakh on incremental turnover above Rs. 20 crore.

In the case of non-agri commodities, MCX has reduced the transaction charges to Rs. 2.10 for every Rs. 1 lakh of turnover for members generating ADTV of up to Rs. 350 crore and Rs. 1.40 per lakh on incremental turnover above Rs. 350 crore.

Earlier, for both agri and non-agri commodities, MCX used to charge Rs. 2.50 for every Rs. 1 lakh of turnover for members generating ADTV of upto Rs. 250 crore, Rs. 1.25 per lakh on incremental turnover above Rs. 250 crore to Rs. 1000 crore; and Rs. 1 per lakh on incremental turnover above Rs. 1000 crore.

Revised transaction charges on Agricultural Commodities

Average Daily Turnover

Transaction Fee rates (Per Rs. 1 lakh of turnover)

Up to Rs. 20 crore

Rs. 0.75

On incremental turnover above Rs. 20 crore

Rs. 0.50

 

Revised transaction charges on Non Agricultural Commodities

Average Daily Turnover

Transaction Fee rates (Per Rs. 1 lakh of turnover)

Up to Rs. 350 crore

Rs. 2.10

On incremental  turnover above Rs. 350 crore

Rs. 1.40

Dr. Manoj Vaish, MD & CEO, MCX said “This move by MCX would make trading in agri-commodities more accessible for the farm community and other participants in commodity market ecosystem, and improve overall hedging efficiency. This is an important incremental step towards market inclusion.”

MCX has revised the transaction charges in the wake of FMC’s directive on February 13, 2014 to introduce differential transaction charges.

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