The Hindu Business Line : Daily biz in currency futures rises to Rs 1,100 crore

MUMBAI: Financial Technologies promoted MCX-SX has increased its average daily turnover in currency futures trading to Rs 460 crore from about Rs 220 crore recorded in the first week of the launch.

According to data available on exchange Web site, MCX-SX recorded a business of Rs 287.49 crore on October 7, the day it launched trading in currency futures. However, the average daily turnover in the first week was Rs 217.14 crore.

On the other hand, the NSE, which was the first exchange in the country to launch currency futures, conducted an average daily business worth Rs 160 crore in the first week of launch. The NSE commenced currency futures trading on August 29.

In India, currency futures trading is growing rapidly with a combined daily business of over Rs 1,000 crore on both NSE and MCX-SX.

The volatility of rupee against dollar is the main reason for the increasing interest in currency futures trading among business houses and banks.

In November, the NSE has clocked a daily business of Rs 650.40 crore while MCX-SX Rs 460.68 crore, taking the total business to Rs 1,110 crore a day.

Meanwhile, about 20 banks have taken membership in the MCX-SX, sources said, adding they are contributing about 25 per cent in the business. It has also started providing currency futures rate updates on SMS.

The strong, dynamic and transparent price signals from the exchange would encourage market participants to use this mechanism to minimise their risk, an official with an exchange said.

The currency futures provides a timely tool to the market participants - importers, exporters, investors, banks and corporates - who have direct and indirect exposure to currency risks. - PTI

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