MCX?SX, which is set to launch trading in equity and derivative markets, has already cornered a major market share from the National Stock Exchange (NSE) in the currency futures trading. MCX?SX commanded a market share of just above 54% compared to NSE?s 46% in the exchange traded currencyfutures market in May.
Initially, when MCX’SX launched futures trading in currency pairs of the rupee-dollar contract in October 2008, two months after NSE commenced its operation in the currency segment, it had amassed a market share of over 30%. But since then, its market share has been improving consistently.
Currently, futures trading has been permitted in rupee pairs of four overseas currencies ?? dollar, euro, yen and pound sterling. While MCX just has an edge over NSE in the widely traded rupee-dollar futures contract with close to 52% share in total turnover, it is far ahead of NSE in other pairs of currency futures contract.
Out of the total turnover on the currency exchange, MCX?SX has a slightly higher share of retail participants compared to NSE. However, the share of proprietary trading of non-bank trading members in the total turnover of MCX’SX is less compared to NSE.
According to data compiled by the market regulator, Securities and Exchange Board of India (Sebi), the percentage share of retail participants in total turnover was 13.28% during the quarter ended March 31, 2010, while proprietary trading of non-bank trading members constituted 78.67% compared to 17.96% and 74.635, respectively, for MCX?SX.
