Tuesday, January 27, 2009

Another market on the verge of takeoff

The NSE currency futures did turnover of $473 million today, and got to open interest of $289 million. Macro underlyings become the biggest derivatives, so this contract has been the 2nd biggest derivative at NSE (after Nifty) for a while now.

They still have small transaction sizes: with 17,163 trades, the average transaction size was Rs.1,348,767. This suggests that the market has grown on the strengths of the traditional equity market community; thus far the banks and corporate customers haven't come in. But with turnover of $473 million it's starting to sound like real money, and the peeling off of smaller corporations from the OTC market can commence. The position limit for an individual client is now $17 million.

3 comments:

  1. I wish there was an easy way to go long INR in the US. Two funds -
    INR
    and
    ICN - dont seemm liquid enough.

    ReplyDelete
  2. How interesting. I wasn't aware of INR and ICN. For locals, the NSE currency futures are incredibly convenient owing to cash settlement.

    ReplyDelete
  3. Can you recommend a good broker to trade currency futures?

    ReplyDelete

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