Don’t miss the latest developments in business and finance.

MSEI to launch new interest rate futures contracts tomorrow

Image
Press Trust of India Mumbai
Last Updated : May 15 2017 | 3:49 PM IST
Metropolitan Stock Exchange of India Ltd (MSEI) will introduce tomorrow new 10-year interest rate futures (IRF) contracts offering 6.79 per cent yield on central government bonds.
The contracts would mature in 2027 and are available to entities like banks, primary dealers, mutual funds, insurers, FIIs, corporates and retail investors, for trading on the exchange's platform, MSEI said in a statement today.
"The stock exchange will launch the new IRF contracts on May 16," MSEI said.
Other national bourses, BSE and NSE would also be launching similar contracts tomorrow.
An IRF is a contract between a buyer and a seller agreeing to the future delivery of any Interest bearing asset such as government bonds.
IRF contracts are offered under 6 year, 10 year and 13 year maturity buckets, depending on the remaining tenure of the underlying bonds.

Disclaimer: No Business Standard Journalist was involved in creation of this content

More From This Section

First Published: May 15 2017 | 3:49 PM IST

Next Story