MCX Stock Exchange Ltd (MCX-SX), the currency futures trading arm of Multicommodity Exchange, has charged the National Stock Exchange (NSE) of adopting predatory pricing techniques and abuse of dominant position that goes against market fair play.
MCX-SX has lodged a complaint with the Competition Commission of India (CCI), the country’s antitrust quasi-judicial body, seeking immediate intervention to prevent NSE from offering several services at sharply lower charges and “discriminatory fee waivers” in the currency derivatives segment.
MCX-SX said transaction fee is the principal source of revenue for stock exchanges and is collected as a percentage on the value of the securities traded.
It alleged that while NSE charges a transaction fee of Rs 2 per lakh on the turnover in its equity derivatives segment, it has waived the transaction fee in its currency derivative segment. MCX said the move is anti-competitive and an unfair practice.
Trading in currency futures was allowed in India last year to allow exporters and importers to hedge against risks and sharp fluctuations in value of the dollar.
MCX-SX in its complaint said NSE has also waived the data-feed fee for providing real-time market data only in respect of its CD segment, which is comes under anti competitive practice, it has alleged.
The complaint was filed last month. Sources in the CCI said that the matter is under review. “The matter is under review, we would take a call on the issue,” a senior official at CCI said.
MCX-SX officials were unavailable for comments.
“We are not aware of any such development and we have not received any such petition,” a spokesperson at NSE told Hindustan Times.