Currency Derivatives

The central bank has increased scrutiny of the derivatives books of private and foreign banks, sources said. Scrutiny of other banks has increased after the IndusInd Bank earlier this year reported a Rs 1,959.8-crore discrepancy in its derivatives portfolio

Currency derivatives open interest rises as rupee volatility spurs hedging

According to the Bloomberg data, the Indian rupee has depreciated to 87.2025 against the US dollar as on February 26, as compared to 83.8213 on October 3, 2024.

Average daily turnover in currency derivatives rises to six-month high

Volumes in terms of open interest contracts and average daily turnover has been falling since the RBI kicked in new norms in the currency derivatives segment which requires underlying foreign exchange exposure for transacting in exchange-traded rupee derivatives.

Open interest in currency derivatives up 44% in Singapore after RBI’s new norms

Bloomberg data indicates that aggregate open interest contracts on the Singapore exchange stood at 2,62,030 on July 9, 44 percent higher than those on May 3, when RBI norms kicked in. From January to now, there has been a 4x jump in open interest for currency derivatives

Currency-derivatives segment shrinks further by 72% MoM and by 96% since RBI directive made headlines

From March to May, the segment's notional turnover shrunk by a little more than 96 percent--from Rs 29.5 lakh crore to Rs 1.14 lakh crore.

MC Exclusive| Brokerages ask currency derivatives dealers to shift focus to equities, commodities

On January 5, the RBI had said that investors must have valid underlying contracted exposure that has not been hedged using any other derivative contract, and they should be in a position to establish the same if required. Currency derivatives volumes dipped thereafter.

Open interest contracts rise in currency derivatives market as corporates ramp up hedging amid rupee volatility

From 83.4675 in the beginning May, the rupee has appreciated to 83.30 against the dollar now.

Currency derivatives volumes fall sharply as RBI’s exposure norms kick in

The initial implementation date of the RBI circular was April 5, which was later extended to May 3 after concerns were raised about participation in the exchange-traded currency derivatives market.

What triggered RBI's January 5 circular on currency derivatives?

As an extended deadline to implement exchange-traded derivative contract rules nears, market participants pitch for rule relaxations to arrest the sharp slide in currency derivative volumes.

Average daily turnover in currency derivatives market falls around 73% so far this fiscal, shows data

On April 9, Moneycontrol reported that open interest currency derivatives contracts on the exchanges fell around 47 percent over the past two weeks.

Currency derivative market: Open interest contracts fall around 47% despite RBI’s deadline extension

Experts say the RBI's extension of the deadline to meet the derivatives norms is only part of the story. The truth is that no one wants to take fresh positions at this time.

RBI governor pitches for increased participation of banks in rupee derivatives market

Das was speaking at the FIMMDA-PDAI Annual Conference, Barcelona

MC Explainer: What's all the fuss around RBI's Jan 5 circular on currency-derivatives trading?

Traders and brokerages believe that the RBI move will kill a market segment that has taken more than a decade to build.

Currency derivative positions without exposure risk regulatory rap, but is there any escape hatch?

Traders who claim underlying exposure when they have none could be asked to pay heavy fines under Foreign Exchange Management Act (FEMA).

RBI defers implementing directions on exchange-traded forex derivatives to May 3

This was done after some concerns expressed about participation in the exchange traded currency derivatives (ETCD) market in the light of the RBI currency derivative norms.

Forex market turmoil: Exchanges' poor communication and not RBI's circular causing losses in currency-derivatives, say sources

Leading exchange issued circulars in this regard to brokerages only on April 1, which was just few days before the earlier deadline.

Some brokerages see sharp unwinding in forex derivatives positions post RBI's diktat

In a circular dated January 5, the central bank has said that investors must ensure the existence of a valid underlying contracted exposure which has not been hedged using any other derivative contract.

Will RBI's new currency derivatives norms wipe out most exchange traded volumes?

The RBI's currency derivative circular specifying the underlying requirement for all transactions will be implemented from April 5.

USDINR derivatives' premiums shoot up, wipe out lakhs of rupees in investor capital

Traders are panicking and trying to exit after brokerages' notifications on the RBI circular on exposure to underlying currency.

Currency derivatives open interest turnover at BSE crosses $2 bn

The open interest number of contracts stood at 19,44,203 in the previous session, with turnover at Rs 10,189.79 crore, as per data available with the BSE.

SEBI eases trading requirement in currency derivatives segment

With an aim to ease trading requirements in the currency derivatives segment, markets regulator SEBI on June 22 said position limit linked to open interest will be applicable at the time of opening a position

BSE to conduct mock trading from disaster recovery site

Leading bourse BSE will conduct a mock trading session from its disaster recovery site on Saturday to test system performance

NSE lowers charges for currency futures

Besides, NSE has also announced a liquidity enhancement scheme for Exchange Traded Funds (ETFs) on its indices. The third major player in this segment, MCX-SX had also tweaked its transaction charges for futures contracts traded on its currency derivatives platform earlier this month.

FTIL in pact with Jhunjhunwala, others to exit MCX-SX

The group has started exiting from the exchange business both in India and abroad after commodity markets regulator FMC order in December 2013 declared FTIL and its founder Jignesh Shah as unfit to run any exchanges in view of this scam.

BSE to remain shut on Oct 15 due to Maharashtra elections

Other exchanges such as NSE, MCX and NCDEX are also expected to remain shut though no formal announcement to the effect has been made yet.