MCX set to start currency derivatives exchange

Leading commodity exchange, Multi Commodity Exchange (MCX), is all set to start currency derivatives exchange shortly.        

The exchange has invited applications for membership for the proposed exchange.        
The trading member for the proposed currency derivatives exchange will be subject to a balance-sheet networth requirement of Rs 1-crore, while the clearing member would be subject to a balance-sheet networth requirement of Rs 10-crore.        

The trading member and sales persons in the currency futures market must have passed a certification programme which is considered adequate by Sebi, the exchange said in a circular.        

The exchange traded currency futures is becoming a reality in India as the Securities and Exchange Board of India (Sebi) is considering applications submitted by both, the National Stock Exchange (NSE) and MCX.        

In fact, it has done a commendable job to consider both stock and commodity exchanges for launching currency futures contracts. This will fetch currency derivatives a grand success as all segments of the financial markets will have easy access to this instrument.        

While stock exchanges will enable their large network of clients, traders, jobbers, arbitrators and speculators to trade in currency derivatives, the commodity exchanges will enable the hedgers, namely importers and exporters, who have genuine hedging needs for protection against bank rate fluctuation, exchange officials said here.