Leading bourse NSE will not levy any transaction fee on the trades done in cross currency derivatives for three more months till August 31 in order to encourage active participation in such contracts.
The exchange had decided that no transaction fees would be levied on the trades done in the segment from February 27, 2018 till May 31, 2018.
"Based on the positive market feedback it has been decided to extend the same for a further period of three months from June 1, 2018 to August 31, 2018," the National Stock Exchange (NSE) said in a circular.
The exchanges — BSE and NSE — launched trading in cross-currency futures and options (F&O) derivatives from February 27. 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.
The exchanges introduced cross-currency derivatives on pairs such as Euro (EUR)-US Dollar (USD), Pound Sterling (GBP)-USD and USD-Japanese Yen (JPY).
Under the contracts, stock brokers, domestic institutional investors, FPIs and clients, are allowed to take positions in the exchange traded cross-currency futures and option contracts.
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