Oct 1, 2008 09:07
ECO8Economy/NationalMumbai bourse launches currency futures tradingMumbai, Oct 1 IANS The Bombay Stock Exchange BSE Wednesday launched a currency derivatives segment BSE-CDX on the dollar-rupee platform."Exchange traded currency derivatives market will provide excellent opportunity to hedge currency risk for different participants," BSE chief operating officer M.L. Soneji said.Currency derivatives are used mostly by small and medium enterprises engaged in international trade to hedge their risks against fluctuations in currency values. Previously, these participants had to depend on over-the-counter OTC products such as forwards, swaps and options to hedge their currency risks."In today's business environment, many entities irrespective of the nature of its business are impacted by currency risk either directly or indirectly," Soneji said.Earlier in August, the National Stock Exchange NSE had started with exchange-traded currency futures for the first time in the country. Leading commodity bourse Multi Commodity Exchange of India MCX is also expected to initiate the facility in future.The contracts will have a minimum size of $1,000 and in same multiples thereafter. They will be available for trading between 9 a.m. and 5 p.m.--Indo-Asian News Servicevb/ank/vt 203 Words*01101813
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