INSUBCONTINENT EXCLUSIVE:
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 (FO) 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 FO 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.
