Photographer: Dhiraj Singh/Bloomberg

BSE To Launch Weekly U.S. Dollar-Rupee Futures And Options Contracts

The Bombay Stock Exchange today said it would launch weekly U.S. 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 U.S. dollar-Indian rupee (USD-INR) currency pair. The Securities Exchange Board of India has approved introducing the weekly contracts.

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.
BSE Media Statement

The final settlement price of the contracts would be computed using the Reserve Bank of India’s reference rate for USD-INR on the last trading day of the contract.

The introduction of this product would allow entities like corporates, foreign portfolio investors and non-resident Indians to participate and take positions in the exchange traded currency derivatives markets, said Ashishkumar Chauhan, managing director and chief executive of BSE. “The move will help also companies to hedge their forex exposure and increase liquidity in the markets.”