MCX gets SEBI nod for currency futures tradingAugust 25th, 2008 - 7:03 pm ICT by IANS
Mumbai, Aug 25 (IANS) The Multi-Commodity Exchange (MCX) has received approval in-principle from the capital market regulator Securities and Exchange Board of India (SEBI) to start currency futures trading.”MCX has received SEBI’s in-principle approval for its subsidiary, MCX Stock Exchange Ltd, which had applied for currency derivatives,” MCX promoter Financial Technologies India Ltd (FTIL) said in a filing at the Bombay Stock Exchange.
The MCX Stock Exchange will commence membership enrolment from Tuesday, it said.
It has already conducted seven road shows in which over 1,000 representatives from commodity brokers, banks, exporters, stock brokers and corporates have shown interest to become its members.
MCX would be the second market after the National Stock Exchange to launch exchange-traded currency derivatives.
Currency futures are a forex derivative contract to buy or sell a currency against another on a specified future date at a price decided in the contract.