Commodity Online
MUMBAI: Trading in currency futures in the National Stock Exchange (NSE) would begin from August 29 this year. This is the first time that retail investors with no exposure to foreign exchange will be able to take a call on rupee's movement with dollar.

All these years trading in foreign exchange was allowed only to banks and companies having currency exposure.

According to NSE officials about 80 per cent of its 1,000 odd members have shown interest in offering currency futures to their clients. Besides, a large number of banks and corporates have also shown interest in exchange traded currency futures.

Currently, trading in currency derivatives takes place among banks and corporates in the over the counter (OTC) market only but registers large volumes estimated at $34 billion per day.

The NSE has not estimated the potential business from this segment although it said that large volumes can be expected.

When asked whether the business done on the OTC market would shift to the exchange, an official said both would co-exist. The permission given by the Reserve Bank and SEBI to allow trading in currency futures