Rupee-Dollar derivative trading
The launch of INR-USD contracts at the GIFT City IFSC is an initiative to onshore the offshore rupee dollar markets, according to trading community leaders.
Commenting on the launch, India INX Chairman Ashishkumar Chauhan said, “The launch of INR-USD contracts is a great initiative to onshore the offshore rupee dollar markets.”
Finance Minister Nirmala Sitharaman inaugurated the Rupee Dollar contract at India INX on 8 May 2020.
Contract specifications:
Contract Symbol: USDINR & INRUSD
Underlying assets: USDINR Spot Rate & INRUSD Spot Rate
Contract Type: Future and Option for both
Contract value: USDINR quoted up to fourth decimal place & US$ quoted in
Cents per 100 Indian Rupees
Contract Size: 100 & 10,00,000
Tick size: 0.0025 & 0.01
Tick Value: 0.25 USD or 25 cents & 1USD
Available Contracts – 12 monthly & 11 weekly contracts for both
Trading Hours: Monday to Friday; 22 hours
Trading volumes on India INX have been growing since the exchange
commenced trading activities in January 2017.
With a cumulative trading volume of US$822 billion since launch and international debt MTN program of approx. US$48 billion, India’s INRUSD derivative is expected to attract more participants to the IFSC and make India INX a leading centre for raising capital for issuers across the globe.
Adding to the successful launch of Rupee Dollar Derivatives, India INX MD & CEO V. Balasubramaniam commented, “We look forward to good participation from our members and international participants as this will be the first offshore contract launched on Indian Rupee Derivative.
“Our uniqueness is that we are the only exchange open for trading for 22 hours in a day in this entire region,” he said on 8 May 2020.
Gift City MD and Group CEO Tapan Ray welcomed the launch, “the Rupee Dollar derivatives trading will enable India to become a net exporter of financial services, being in sync with the vision of GIFT City as a platform for onshoring financial services business, presently being lost to other financial centres across the world.”
Trading of INR-USD futures and options will enable participants to hedge, trade and settle in USD with market rules and ecosystem at GIFT City IFSC that is at par with other global markets.
With the launch of INR-USD derivative, the trades that have been migrated to other international financial centres, will now bring rupee trading home. India International Exchange already trades 22 hours a day and the INR-USD Futures and Options contract will also be available for 22 hours
to all international participants across the globe.
As India’s first international exchange, India INX has pioneered several firsts at GIFT IFSC since launch in January 2017.
India INX is the first and leading exchange with market share of 90%+ to
introduce a single platform across multi-assets i.e. equities, commodities and currencies derivatives.
India INX is also the first exchange in India to launch Gold Options and has recently commenced derivatives trading in base metals viz. fiinews.com
