Commodity Online
KOCHI: Exchange traded Currency Futures was launched in India going by its successful track record in such overseas exchanges as the Dubai Gold and Commodities Exchange (DGCX).
The greatest advantage of currency futures is the transparency and reliability of trades, according to V Sundarraman, Senior Vice President of National Stock Exchange. Securities and Exchange Board of India has also given approval for Multi Commodity Exchange of India, country's largest commodity bourse, to begin currency futures trading.
Speaking at a seminar on Currency Futures organised by JRG Securities Ltd, he said the convenience of a market mostly depend upon the accessibility and reliability. The NSE has succeeded to provide those qualities to its clients and has provided a platform as easy to trade as equities and commodities, he added.
Even though there is much difference between commodities and currency markets, the procedures are almost same for both markets, said Sundaraman.
Despite the OTC-based Forex exchange market that is already active in India, Currency Futures exchange facilitates a better atmosphere and great accessibility. High risk hedging option is an advantage of Currency Futures when compared to equities and commodities.
Sundaraman said that the software which is operational at NSE for currency futures enables the trader to operate both equities and currency futures on a single screen with two login modes. Those who are managing equities desk on the exchanges, can manage Currency Futures exchange too, he pointed out.
Recently the Union Finance Ministry had pointed out that absence of Currency Futures market was one of the hindrances for foreign investors to start business in India. The government’s decision to deepen its debt and currency markets would help the country to attract financial and foreign investments.
