Forex futures hits Indian bourses

Multi Commodity Exchange of India (MCX), a unit of Financial Technologies, has received an in-principle approval to offer currency futures trading by a newly set up unit

MCX has received an approval for its unit, MCX Stock Exchange Ltd, which had applied for currency derivatives and it will start offering membership from Tuesday.The National Stock Exchange (NSE) will introduce trading in rupee futures from Friday after the central bank set market guidelines and said bourses recognised by SEBI could seek the regulator's approval to offer exchange-traded currency futures.

MCX is governed by the Forward Market Commission (FMC) and it had to set up a separate unit, which will be regulated by SEBI, to offer currency futures trading. The Bombay Stock Exchange is waiting for the final go-ahead to start currency futures trading after it got an in-principal approval earlier this month.

The National Multi-Commodity Exchange of India, the country's third-largest commodity exchange, also plans to launch currency derivatives. MCX is the biggest among 22 Indian commodity bourses in terms of turnover, with a 75 percent share.

It was valued at $1.1 billion last year when Citigroup and Merrill Lynch each bought 5 percent stakes in bourse promoted by Financial Technologies. In February NYSE Euronest, the parent of New York Stock Exchange, agreed to buy 5 percent stake in MCX.