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MCX Stock Exchange (MCX–SX) to launch futures trading in 3 new currency pairs from February 1st, 2010

January 29th, 2010

New Currency pairs for Euro, Pound Sterling and Japanese Yen with Indian Rupee will allow hedging against non-US Dollar exposures too

Mumbai, 29th January’10

MCX Stock Exchange (MCX–SX) has decided to launch futures trading in Euro-Indian Rupee (EUR-INR), Pound Sterling-Indian Rupee (GBP-INR) and Japanese Yen-Indian Rupee (JPY-INR) currency pairs with effect from Monday, February 1, 2010. This was made possible based on the policy and approval of RBI and SEBI.

The exchange will currently offer 12 contracts and 6 spread contracts for each of the new currency pairs. All the contracts will have a tick size of 0.25 paise or INR 0.0025. These contracts will be cash settled in rupees.

Speaking about the launch of new currency derivatives segments, Mr. Joseph Massey, MD&CEO, MCX-SX, said, “We are grateful to SEBI and RBI for allowing us to launch new pairs in exchange-traded currency derivatives. The move will go a long way in helping market participants, especially international traders, hedge against cross-currency volatility and mitigate risk in export and imports across all major traded currencies.

MCX-SX has made significant efforts through education and awareness creation to ensure participation in this market by market participants having exposure to currency risk. MCX-SX is currently the market leader in the USD/INR segment witnessing a broad based participation from over 478 cities and towns across India through participants, which include banks, corporate, physical market stakeholders and financial sector users. Several pioneering market development initiatives have been undertaken by the exchange to raise service levels to global standards and provide an effective and efficient risk mitigation platform. MCX-SX was the first stock exchange in India to:

Releasing 1st Handbook on currency futures

Providing price updates of currency futures via SMS

Reduce the gap of collections of mark to market (M2M) margins to same day

Deploying superior technology for continued operations during sun outage

Launching website in 11 regional languages

Conducting an average of one education and awareness program per working day

About MCX-SX (www.mcx-sx.com)

MCX-SX, India’s new stock exchange, currently offers futures trade in currency derivates. Through its pioneering market development initiatives, MCX-SX has emerged as the market leader in USD/INR segment within one-year of its inception.

MCX-SX has been the first exchange in India to reduce the gap of collections of mark-to-market margins to same day, deploy superior technology for continued operation during sun outage, promote financial literacy and financial inclusion, release the first handbook on currency and interest rate futures, provide price updates via SMS and launch 11 regional websites.

True to its philosophy of ‘Systematic Development of Markets through information, innovation, education and research’ MCX-SX endeavours to ensure continuous innovation and to introduce products for meeting the needs of various market participants.

For Further Information Contact
Setu Shah, Vice President –  Communications, MCX-SX, Board No: +91 22 67318888, Mobile: +91 9930267595, setu.shah@mcx-sx.com or Narayan Bhatt / Ujjawal Punmiya, Adfactors PR Pvt. Ltd., Mobile No: +91 9769226670, Mobile No: +91 9619130947, narayan.bhatt@adfactorspr.com; Ujjawal.punmiya@adfactorspr.com

Entry Filed under: Commodities