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Guidelines on trading of Currency Futures and Exchange Traded Currency Options in Recognised Stock Exchanges – Introduction of Cross-Currency Futures and Exchange Traded Option Contracts
Presently, residents and eligible non-residents can trade in US $ – INR, Euro – INR, GBP – INR and Yen JPY – INR currency futures contracts and US $ – INR currency option contract on recognised stock exchanges.
This circular now permits with immediate effect,
1. Residents and FPI to also take positions, within the position limits as prescribed by the exchanges, in,
(a) Cross-currency futures in the currency pairs of EUR-USD, GBP-USD and USD-JPY
(b) E xchange traded cross-currency option contracts in EUR-INR, GBP-INR and JPY-INR in addition to the existing USD-INR option contract.
The above contracts are in addition to the existing contracts that can be undertaken without having to establish underlying exposure.
2. Banks to undertake trading in all permitted exchange traded currency derivatives within their Net Open Position Limit (NOPL) subject to limits stipulated by the exchanges.
Detailed terms and conditions are Annexed to this circular as under: –
Annex I Currency Futures (Reserve Bank) (Amendment) Directions, 2015 Notification No. FMRD. 1/ED(CS)-2015 dated December 10, 2015
Annex II Exchange Traded Currency Options (Reserve Bank) (Amendment) Directions, 2015 Notification No. FMRD. 2 /ED(CS)-2015 dated December 10, 2015
Annex III Position Limits for market participants in the Exchange Traded Currency Derivatives
