NSE to introduce weekly USD-INR futures contracts on 11 Oct
- The contract size would be USD 1,000 and will be available for trading in the currency derivatives segment of the exchange
The National Stock Exchange (NSE) on Monday said it will introduce weekly futures contracts in the US Dollar-Indian Rupee (USD-INR) currency pair on October 11.
Eleven serial weekly futures contracts will be available for trading, excluding the expiry week, wherein a monthly contract expires on a Friday. The contracts shall expire at 12:30 pm on the expiry day.
The contract size would be USD 1,000 and will be available for trading in the currency derivatives segment of the exchange, according to a release.
The bourse had launched weekly options on USD-INR currency pair on December 3, 2018.
"Since then, the daily average turnover in USD-INR derivatives (futures & options) has increased by 12 per cent from ₹17,011 crores in FY19 to ₹19,007 crores in FY22 (up to September 29, 2021)," the release said.
The weekly derivatives have provided market participants with a low-cost transacting tool to manage their exposure to various short-term market movements stemming from government policies, economic data releases, government reports or market events that take place in specific timeframes.
The shorter tenure of the options contracts also helps to limit the time-related premium, thereby offering the market participants efficient short-term protection for their portfolio for a relatively lower cost, the release said.
"The launch of weekly futures on USD-INR currency pair will complement the existing monthly contracts and offer market participants a flexible and precise hedging tool to manage their exposure and trade short-term market movements," Vikram Limaye, MD and CEO of NSE, said.
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