MCX-SX debuts today, triggering fresh battle of bourses for volumes
While it has been more than 20 years since an equity exchange was launched in India, the recent past did see its fair share of developments due to the impending entry of a new player. Brokers seem to be the biggest beneficiaries as membership fees dropped. MCX-SX has managed to get a little over 400 broker members on board.
MCX-SX launched a membership drive with fees almost 30-40% lower than that of the National Stock Exchange (NSE), which is currently the largest equity bourse in the country. It led to the NSE launching a new category of membership with significantly lower fees. MCX-SX has also pegged its trading costs lower than that of existing stock exchanges.
Meanwhile, the derivatives segment of the exchange will have around 150 stocks on which single stocks future would be launched. Derivatives contracts on the index will, however, not be available immediately.
While market players believe that investors would gain the most due to the competition between stock exchanges, Chidambaram concluded his speech aptly summing up the scenario expected to emerge in the days to come.
“You have competition. There are two guys out there waiting for you to enter their arena. To those two guys I say there is a competitor entering the arena. So good luck to all three of you and I sincerely hope that competition among all three of you would make the stock market a vibrant place for
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