Kolkata, Aug 1 (Inditop.com) The MCX Stock Exchange (MCX-SX), which started currency futures trading in October, has seen its daily turnover rising more than tenfold to Rs.3,838 crore in July, a top official said here Saturday.
“The currency futures response has been very encouraging. In July daily turnover was Rs.3,838 crore, up from Rs.324 crore when we launched it in October,” MCX-SX executive director U. Venkataraman told reporters on the sidelines of a seminar organised by the new exchange.
Retail participation, contributing 15-20 percent of the total trading of currency futures, “is increasing by the day. They look upon it as an asset class also. A lot of high net worth individuals have also started looking into it. Bullion and non-ferrous dealers have also found this platform as a natural place to hedge their currency risk”, he said.
Asked about the demand for introducing currency futures of the euro, the pound sterling and the yen, he said: “It is under consideration. As and when the regulator gives the permission it will start.”
The National Stock Exchange (NSE) had kicked off exchange-traded currency futures for the first time in the country Aug 29 last year. The Bombay Stock Exchange (BSE) launched it in Oct 1.
Talking about the preparation of launching upcoming interest futures of the exchange, Venkataraman said: “System-wise we are ready. Talks are on between us, SEBI (Securities and Exchange Board of India), RBI (Reserve Bank of India), BSE and NSE.”
The purpose of these derivatives, based on 10-year government bond yields, is to help banks, insurance firms and even households guard against volatility in interest rates.
A joint RBI-SEBI technical committee had in June recommended allowing interest rate derivatives based on 10-year government bond yields.
