BUSINESS

Trading in currency futures on MCX-SX from Tuesday

Source:PTI
October 06, 2008 14:12 IST

MCX Stock Exchange Ltd, a subsidiary of the country's leading commodity bourse MCX, said on Monday it will commence live trading in currency derivatives from Tuesday.

The trading timing would be from 0900 to 1700 hours from Monday to Friday, the exchange statement said.

The Securities and Exchange Board of India Chairman, C B Bhave, will inaugurate the currency derivatives at MCX-SX on Monday, but the trading will commence only the next day, it said.

MCX had received in-principle permission for starting currency futures trading in August. Earlier, participants had to depend on over-the-counter products such as forwards, swaps and options to hedge their currency risks.

To start with, MCX-SX would be offering USD-INR futures monthly contracts for a maximum of 12 months ahead.

The National Stock Exchange had kicked off exchange-traded currency futures for the first time in the country on August 29, while Asia's oldest bourse Bombay Stock Exchange launched the facility on October 1.

Currency futures are a forex derivative contract to buy or sell one currency against other on a specified future date, at a price decided in the contract.

Source: PTI
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