The battle between the National Stock Exchange (NSE) and MCX Stock Exchange Ltd (MCX-SX) on abuse of dominance appears far from over.
The Competition Commission of India (CCI) is expected to pass an order on MCX’s charge that the NSE was indulging in predatory pricing.
The two dissent notes attached with the CCI order, which say that the bourse has not resorted to any predatory pricing, have strengthened the NSE’s case, which could move a tribunal or high court.
The NSE had approached the Delhi High Court after the CCI imposed a showcause notice on the bourse asking why penalty should not be imposed on it for allegedly abusing its dominant position in currency futures trade.
MCX-SX had charged the NSE of adopting predatory pricing techniques and abuse of dominant position that goes against market fair-play. It had then sought the CCI’s intervention to prevent the NSE from offering services at lower charges and “discriminatory fee waivers” in currency derivatives.
Currency futures trading was allowed in India in 2008 to allow exporters and importers to hedge against sharp fluctuations in value of global currencies.
While the NSE has to send its reply within the next few days, MCX has claimed that the bourse is using ways to delay the process. “The NSE has been consistent in delay tactics and the dissent notes would not derail the process,” a senior MCX official told HT.
NSE and CCI officials refused to comment on the issue.
The Delhi High Court last month directed the CCI to send a copy of all relevant details of its order on the basis of which a penalty show cause notice was issued to the bourse. However, the CCI sent the order without the notes. The court thereafter asked the CCI to send copies of the dissent notes to the bourse as well.