MCX-SX to start live trading in currency futures from tomorrow

MCX Stock Exchange (MCX-SX), a subsidiary of the country's leading commodity bourse MCX, today said it will commence live trading in currency derivatives from tomorrow.

The trading timing would be from 0900 to 1700 hrs from Monday to Friday, the exchange statement said.

The Securities and Exchange Board of India (SEBI) Chairman, C B Bhave, will inaugurate the currency derivatives at MCX-SX today, but the trading will commence only the next day, it said.

MCX had received in-principle permission for starting currency futures trading in August. Earlier, participants had to depend on over-the-counter products such as forwards, swaps and options to hedge their currency risks.

To start with, MCX-SX would be offering $-Re futures monthly contracts for a maximum of 12 months ahead.

The National Stock Exchange had kicked off exchange-traded currency futures for the first time in the country on August 29, while Asia's oldest bourse Bombay Stock Exchange launched the facility on October 1.

Currency futures are a forex derivative contract to buy or sell one currency against other on a specified future date, at a price decided in the contract.