MCX Stock Exchange to launch currency futures trading on 7 October
06 Oct 2008
Mumbai: MCX Stock Exchange Ltd, a subsidiary of the country's leading commodity bourse Multi Commodity Exchange of India (MCX), will commence live trading in currency derivatives from 7 October.
Trading would take place between 0900 and 1700 hours from Monday to Friday, the exchange said in a statement, MCX parent company Financial Technologies India has informed that MCX Stock Exchange.
C B Bhave, chairman of the Securities and Exchange Board of India, will inaugurate the currency derivatives at MCX-SX today, but the trading will commence only from tomorrow, an MCX release said.
MCX-SX would initially be offering US dollar-rupee futures monthly contracts for a maximum of 12 months forward.
The National Stock Exchange (NSE) launched an exchange-traded currency futures for the first time in the country on 29 August, while Asia's oldest bourse Bombay Stock Exchange launched the facility on 1 October.
MCX had received in-principle permission for starting currency futures trading in August. Earlier, participants had to depend on over-the-counter products such as forwards, swaps and options to hedge their currency risks.
Currency futures are a forex derivative contract to buy or sell one currency against other on a specified future date, at a price decided in the contract.
Financial Technologies (India) registered a 179.20 per cent growth in net profits at Rs169.87 crore for the quarter ended June 2008 from a profit of Rs60.84 million for the quarter ended in June 2007.
Total income rose 147.04 per cent to Rs254 crore for the June 2008 quarter against Rs102.83 crore for the quarter ended June 2007.
