India’s Bombay Stock Exchange (BSE) has launched trading in currency derivatives.
BSE will permit trading in contracts for the Indian rupee against each of the US$, euro, sterling and yen. Currency options trading will also begin for US$-rupee contracts.
Trading of the currency derivatives is undertaken on BSE’s new trading platform using BOLT Plus software, which is based on T7, the global trading architecture of Deutsche Börse.
A key feature of the new system is a response time of approximately 200 micro seconds which makes it the fastest trading platform in the country.
Clearing and settlement of currency derivatives trades will be performed by the Indian Clearing Corporation, a wholly owned subsidiary of BSE.In order to encourage participation in the new market, BSE has decreed that no transaction charges per trade will apply. Price band ranges will be +/-3% for trades of contracts of up to 6 months. For contracts longer than 6 months, the price band will be +/- 6%.