Currency Futures: Competition tightens

[anant1a]

MUMBAI: Currency Futures trading in India (at the NSE) is barely a month old ( already attracting good responses ) and two more exchanges gearing up for trading, the business is surely going to attract nation wide interest.

The exchanges which got approval for trading, (NSE, BSE and the MCX SX) have already began playing tricks to attract participants even by offering free memberships.

Analysts said Currency Futures could also be a success just like the stock markets even at a much more pace as ambitious members were only required to find a net worth of one crore rupee for becoming a trading member.

It is the MCX that offers a free membership to attract traders and also to cover lost grounds as it was forced to apply separately with SEBI and FMC to get sanctions. MCX, being a commodity exchange originally had to float a subsidiary MCX SX and obtain various regulatory approvals.

MCX SX is granting a full waiver of processing fee and initial deposit on applications for trading members in currency futures. However, there is no such waiver on deposits for clearing members.

The NSE and the BSE is likely to follow the MCX SX in offering free memberships to participants, otherwise they couldn’t catch up with it.

Analysts also pointed out that, more and more trader friendly movements could come out from all these extremely competitive bourses in the near future and with expected healthy competitions, Currency Futures in India is going to play a big role in the country’s economic prosperity.