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NSE launches futures on overnight call rate

Press Trust of India  |  New Delhi 

The National Stock Exchange Monday said it has introduced futures on overnight call rate (Mibor) to provide participants an opportunity to manage risk exposures.

Mibor (Mumbai Inter-Bank Offer Rate) is the interest rate at which banks borrow from another for short term purposes.

"It is important to develop tools to help institutions manage interest rate risk. The futures on MIBOR, which is one of the key barometers of India's overnight borrowing and lending, is being introduced with the objective of providing a hedging instrument for interest rate risk," said NSE's

On the first day, turnover (notional) in Mibor futures was Rs 185 crores. The participation was from financial institutions like banks, primary dealers and from the brokers, the NSE said in a release.

Financial Benchmarks Pvt Ltd announces the overnight Mibor on a daily basis except holidays.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, December 03 2018. 22:20 IST
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