BSE See NSE See 48,080.67
374.87 (0.79%)

BSE, NSE can now offer cross currency derivatives

Gayathri Udyawar
/ Categories: Mindshare, Markets
Rate this article:

The market regulator, Securities and Exchange Board of India (SEBI) has given a go-ahead to leading bourses NSE and BSE to offer cross currency derivatives products.

The exchanges are eager to launch cross currency future and options products. Pairs such as EUR-USD, GBP-USD and USD-JPY, can now be offered by the exchanges. Currently, they are offering currency contracts like EUR-INR, GBP-INR, JPY-INR and USD-INR. Now, these currencies will also available for options trading. These trades can be placed between 9:00 AM to 7:30 PM. Stockbrokers, DIIs, FPIs are allowed to take positions in the cross-currency futures and options contracts.

Cross Currency derivatives enable direct hedging of exposures in foreign currencies and facilitate execution of cross-currency strategies by market participants, besides improving liquidity in existing contracts. Both exchanges can now offer more products to retailers and hedgers. This move will also help the exchanges compete against the growing popularity of foreign exchanges like SGX.

“The introduction of new products will allow entities like corporates, FPI and NRI to participate and to take positions in the exchange-traded currency derivatives markets. Besides, a longer trading session will enable market participants to capture key global events in pricing which they otherwise lose out,” said Ashishkumar Chauhan, MD and CEO of BSE. 

Previous Article HG Infra Engineering - Good to Subscribe?
Next Article Dilip Buildcon bags road project worth Rs. 380 crore from NHAI

1 comments on article "BSE, NSE can now offer cross currency derivatives"

Avatar image

Adam Simpson

Being a Forex trader I am very particular about choosing the right broker at the time. Secondly, I don’t miss visited several blogs and forums that helps me to stay informed about the expected risk factors, and prepare a plan of action accordingly.

Please login or register to post comments.

Get A Call From Industry Experts

Send Otp

   I authorize DSIJ Pvt Ltd to contact me. This will override registry on the NDNC.