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Interest rate futures: NSE, MCX-SX set to fight it out

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Palak Shah Mumbai
Last Updated : Jan 20 2013 | 12:00 AM IST

The country’s largest exchange, the National Stock Exchange (NSE), and Financial Technologies-promoted Multi-Commodity Exchange (MCX-SX) are getting ready for a slugfest in the soon-to-start interest rates futures market.

While MCX-SX has started conducting road shows and workshops to spread awareness about trading in interest rate futures among market participants, the NSE has scheduled a mock-trading session for market participants on Saturday.

Sources say the exchange is ready with the necessary software and technology. The mock-trading session will be conducted to help market participants familiarise themselves with the system and its rules. NSE declined to comment on the issue.

Last week, MCX-SX organised discussion forums and workshops on interest rate futures in Mumbai and New Delhi. Speaking to Business Standard, MCX-SX Managing Director Joseph Massey had said the event was organised mainly to mobilise support from other industry players.

Currently, currency futures are traded on MCX-SX and it has been waiting for regulatory nod for equity trading.

Trading in currency derivatives was launched in August 2008. The regulators had plans to launch trading in interest rates futures in August 2009.

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A special committee of the Securities and Exchange Board of India and the Reserve Bank of India has been surveying the market to ensure necessary regulatory environment.

There is speculation that trades in interest rate futures will be physically settled, unlike derivative trades in the equity market.

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First Published: Jul 23 2009 | 12:46 AM IST

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