Millennium Post

Bombay Stock Exchange launches currency derivatives platform

BSE will now allow the rupee pair trading in dollar, euro, pound and the yen on the new currency derivatives segment. To begin with, currency options trade will be on dollar-rupee contracts, which will be without charges for the first six moths. With this the BSE becomes the fourth stock exchange in the currency derivatives segment after the NSE, MCX-SX and United Stock Exchange.

BSE chief Ashish Chauhan said the exchange will not levy any transaction charge on the trades done in the currency derivatives segment for the first six months.

Launching the platform, Union Minister of State for Finance J D Seelam said: ‘Improvement in investor base can help a lot in bringing the much-needed transparency and participative capital market that would enhance the investment in the infrastructure and other sectors.’

Chauhan said: ‘The currency and interest rate derivatives trading platforms will open new avenues for investors.’ BSE currency segment will allow trading on all week days between 9 am and 5 pm barring the day of expiry of contract, when the trading will be stopped at 12.15 pm for current month contracts.

The clearing and settlement of trades executed on the currency derivatives segment will be performed by the Indian Clearing Corporation, a wholly-owned arm of the BSE.
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