MSE Starts Drive To Give Various Incentives To Brokers
The incentive scheme is part of a member activation drive announced by the exchange today
Metropolitan Stock Exchange of India (MSE) today said it will reimburse clearing fee paid by its registered brokers to their clearing members, a move which will help reduce the transactional cost for brokers.
The incentive scheme is part of a member activation drive announced by the exchange today. The drive would provide all infrastructural support to its members, various incentive schemes as well as lowest transaction charges on almost all product contracts.
"The exchange introduces a business loyalty program, called 'MY MSE', under which the members need to comply with several businesses and risk mitigating parameters to be eligible for the incentive," MSE said in a statement.
"Among the incentive schemes, the exchange is reimbursing clearing fee paid by its trading members to their clearing members which will reduce the transactional cost of brokers.
Every broker getting activated shall be reimbursed User Id activation fee apart from other infrastructural support," it added.
MSE COO Abhijit Chakraborty said bringing back members to an active trading status is key to the success of new product launches by the exchanges.
"We want our members to experience efficiency, ease of operations, newer products, all at low fixed operating cost.
This is a stage-wise business building plan which MSE wishes to initiate at appropriate time-frames," he added.
MSE, earlier known as MCX-SX, was set up by Jignesh Shah-led Financial Technologies (India) Ltd (FTIL) and it commenced operations in Currency Derivatives segment in October 2008.
It began operating as a full-fledged bourse with the launch of equity trading in February 2013.
While MCX-SX had witnessed a strong performance in the initial period of its launch, the turnover saw a sharp plunge amid a payment crisis at National Spot Exchange Ltd (NSEL), which was also promoted by Jignesh Shah.
MSE has put together a 360-degree revival plan focusing on introducing new products, revamped processes, branding and ease of business for its members.
As part of its strategy, it will emphasise on expanding the market by identifying the gaps and not by competing with other exchanges.
MSE is currently focusing on enhancing fixed income and currency segments and is currently in talks with mutual funds to encourage participation in the segment.
Meanwhile, MSE also recently announced a rights issue.
"The proceeds shall be utilised for further capitalisation of its subsidiary Metropolitan Clearing Corporation and fund strategic business interests," MSE said.