IRF records trades worth Rs 67,712 cr in Apr-Jun

BSE recorded an IRF trading value of nearly Rs 3,735 cr in first quarter

Trading in Interest Rate Futures on top three bourses rose by 20% in June, taking the overall turnover in the segment to more than Rs 67,712 crore in the first quarter 2014-15.

The combined trading value of Interest Rate Futures (IRF) on BSE, NSE and MCX-SX rose to Rs 26,505.51 crore in June from Rs 22,055 crore in May, the data compiled from exchanges showed.

With such significant growth in June, the total turnover during April-June reached Rs 67,712.51 crore. In April, the combined value of the IRF trades stood at Rs 19,151 crore.

The April-June figures are higher than Rs 39,944-crore trade in IRF logged in last quarter 2013-14. The trade in January-March was for less than three months as the product was launched mid-January.

The value of IRF trade on NSE stood at Rs 63,214 crore for the first three months of the current fiscal, which is over 90% of the total IRF trades on three bourses.

In June alone, trades worth Rs 25,139 crore were seen on NSE, up from Rs 20,472 crore in the preceding month.

BSE recorded an IRF trading value of nearly Rs 3,735 crore in the first quarter.

MCX-SX witnessed a turnover of Rs 763.55 crore for April- June period, 2014-15.

The IRF trade on BSE in June was Rs 1,237 crore, while on MCX-SX it was Rs 129.55 crore.

The IRF turnover on BSE and MCX-SX in June saw a fall from the previous month.

An IRF is generally a contract between a buyer and a seller agreeing to the future delivery of any interest-bearing asset such as government bonds.

The cash-settled IRFs provides market participants with a better option to hedge risks arising from fluctuations in interest rates, which depend on various factors including RBI policy, demand for liquidity and flow of overseas funds.

Banks, primary dealers, mutual funds, insurance companies, FIIs, corporates and brokers, as well as retail investors can trade in this product.