BSE to launch IRF trading on 28 Jan
13 Jan 2014 4:12 AM IST
Leading stock exchange BSE said on Saturday that live trading in new interest rate futures (IRF) in long-tenure 10-year government bonds will begin on its platform on 28 January. The exchange has already received the approval of market regulator Securities and Exchange Board of India (Sebi) for launching IRFs.
‘We will launch IRF trading on 28 January,’ BSE MD and CEO Ashishkumar Chauhan told reporters here at a function organised by Association of National Exchange Members of India (ANMI). Besides, NSE will begin live trading in the IRF on 21 January, while MCX-SX said it will also go live this month without giving an exact date.
Earlier last month, Sebi permitted the stock exchanges to introduce cash-settled IRFs on 10-year government bonds. An IRF is a contract between a buyer and a seller agreeing to the future delivery of any interest-bearing asset such as government bonds. The cash-settled IRFs will provide market participants with better options to hedge risks arising from fluctuations in interest rates.
‘We will launch IRF trading on 28 January,’ BSE MD and CEO Ashishkumar Chauhan told reporters here at a function organised by Association of National Exchange Members of India (ANMI). Besides, NSE will begin live trading in the IRF on 21 January, while MCX-SX said it will also go live this month without giving an exact date.
Earlier last month, Sebi permitted the stock exchanges to introduce cash-settled IRFs on 10-year government bonds. An IRF is a contract between a buyer and a seller agreeing to the future delivery of any interest-bearing asset such as government bonds. The cash-settled IRFs will provide market participants with better options to hedge risks arising from fluctuations in interest rates.
Next Story
