New Delhi: The turnover of the 15-month old
currency futures market in the country on Tuesday exceeded the cash
equity segment by over a whopping 48 per cent to Rs 34,453
crore.
While the turnover of over a century-year old cash equity
market at the end of today's trade stood only at Rs 23,227
crore.
Of the total trade that took place in the currency
futures segment today, as much as Rs 18,365 crore was carried
out on the MCX Stock Exchange (MCX-SX) and remaining Rs 16,088
crore on the National Stock Exchange (NSE), according to the
exchange data.
Similarly, share trading in the cash segment witnessed a
volume of Rs 16,851 crore on the NSE and Rs 6,377 crore on the
Bombay Stock Exchange (BSE).
"The currency futures market turnover has been Rs 11,226
crore higher than the cash equity market turnover today," the
MCX-SX said.
Globally, the daily turnover volume of currency futures
have remained higher than the cash equity segment. However, in
the domestic market, it is picking up faster, though it was
launched only in November 2008.
"It is a good sign that participation in the currency
futures market has started increasing. Corporates and
arbitragers are hedging their risks more on the exchange
platform now," SMC Global vice-president Rajesh Jain said.
However, the currency futures market is yet to mature in
the country because options are still not allowed, he added.
Brokers are optimistic that going forward, the country
will catch up with the global volumes as stock market
regulator Sebi and the Reserve Bank today allowed trading in
more currencies such as the yen, euro and pound against the
rupee. So far, trade was allowed only in the dollar-rupee
contracts.
Because of the global financial crisis, currency futures
traded on exchanges are considered much safer than those
traded in the open market. Currency futures refers to a
contract to exchange one currency for another at a specified
date and price, another expert said.
PTI
First Published: Tuesday, January 19, 2010, 21:36