BSE to launch weekly USD-INR futures and options contracts

Leading exchange BSE today said it would launch weekly dollar-rupee futures and options contracts on July 30, a move that would help increase liquidity in the market.

Currently, monthly contracts are available on all approved currency pairs, including USD-INR currency pair.

Regulator Sebi has approved introducing weekly contracts on USD-INR futures and options.

"For weekly USD-INR futures and options contracts, 11 weekly expiry contracts, excluding the expiry week of monthly contract, shall be available for trading.

"The last trading day for the contracts shall be every Friday of the week except for expiry week of monthly contract," the BSE said in a release.

The final settlement price of the contracts would be computed using the RBI reference rate for USD-INR on the last trading day of the contract.

BSE MD and CEO Ashishkumar Chauhan said the introduction of new products would allow entities like corporates, foreign portfolio investors and non-resident Indians to participate and to take positions in the exchange traded currency derivatives markets.

"The move will help also companies to hedge their forex exposure and increase liquidity in the markets," he added.

In July, BSE currency derivatives' daily average turnover was Rs 29,725 crore with market share of about 60 per cent.