## 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.

Please note: LaTeX mathematics works. This means that if you want to say $10 you have to say \$10.