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Metropolitan Stock Exchange (MSE) said it has received the approval from the Securities and Exchange Board of India (SEBI) to launch weekly options on US dollar-Indian rupee (USD-INR) and other new currency products.
The move will enable market participants to reduce their cost of hedging significantly.
These new products will be available on the MSE platform from the first week of December, the exchange said in a statement.
Besides, MSE has been allowed by Sebi to introduce monthly options contracts on currency pairs of Euro-Indian Rupee (EURO-INR), the British Pound - Indian Rupee (GBP-INR) and the Japnese yen and Indian Rupee (JPY-INR).
Further, the exchange has been permitted to launch futures and options (F&O) on cross currency pairs of EUR-USD, GBP-USD and USD-JPY. These F&O on cross currency pairs would be available for trading from 9000 hours am to 1930 hours on trading days.
The approval for new products comes at the most opportune time when the Indian market requires new hedging products in currency in the wake of high volatility in the currency markets.
With the new products in its kitty, the exchange said it now plans to improve its market share in currency derivatives segment.
“MSE is now in a much comfortable position to launch new product segments and put behind the lingering worries of working capital. This has laid the path for the exchange to implement all the measures as per the turnaround plan, which includes expanding our product basket,” MSE Chief Financial Officer (CFO) Kunal Sanghavi said.
“The approval from the market regulator is a show of faith for our future prospects and also boosts the confidence of the management team that is focused on revival,” he added.
SEBI had recently revised the net worth criteria for clearing corporations from Rs 300 crore to Rs 100 crore, which will enable MSE to free up excess amount locked in its clearing arm and use it for implementing its turnaround plans.
The exchange said it is actively working to revitalise its equity segments as well.
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