BSE, NSE and MCX to start currency futures
11 Aug 2008
Mumbai: Leading stock and commodity exchanges in the country – Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and the Multi Commodity Exchange (MCX), will, for the first time, start trading in currency futures in India with approval due from the Securities and Exchange Board of India (SEBI).
While NSE and BSE will enable traders, jobbers, arbitrators and speculators, including their clients, to trade in currency derivatives, MCX will enable importers and exporters of commodities to hedge against bank rate fluctuations.
Trading in currency futures will become operational once the applicants complete all formalities and put in place the software and hardware, SEBI officials said.
MCX has already invited applications for membership for the proposed currency futures exchange.
The trading member for the proposed currency derivatives exchange should have minimum networth of Rs1 crore (on the balance-sheet), while the clearing member should have a networth of Rs10-crore.
The trading members and sales persons in the currency futures market must have passed a certification programme, which is considered adequate by SEBI, the exchange said in a release.