Mumbai (PTI): National Stock Exchange will start holding mock trading in currency futures from later this week, official sources said.
The exchange was given an in-principal approval by the market regulator SEBI to set up a separate segment for currency futures on August 12.
Currency futures which are used as an hedge against foreign exchange risk is a contract to exchange one currency for another at a specified date in future at an exchange rate that is fixed on the purchase date.
Presently, trading in currency futures takes place in the spot market. It will be for the first time currency futures will be allowed to be traded on an exchange with even speculators allowed to build positions.
The NSE would hold mock trading for about a week. When asked when would regular trading in currency futures star sources said a logical extention of mock trading will be live rading which will be very soon.
The exchange is expecting good volume in this new class of market segment with even retail investors expected to participate.
Sources said that banks are also very keen on this product and are expected to participate in a big way.
"Market is waiting for a product like this. It is a new asset class for brokers to trade," a source said.
The NSE has invited applications for membership to the currency derivative segment. The membership is open to the existing members of NSE, members of NCDEX, a commodity exchange co-promoted by the NSE and banks among others.
No comments:
Post a Comment