NSE launches weekly F&O contracts

New Delhi: National Stock Exchange (NSE) on Monday launched weekly? futures? and options ? contracts on three currency pairs-- Euro-Indian Rupee, Japanese Yen- Indian Rupee and?Pound Sterling-Indian Rupee. "NSE is launching a weekly future's contract for the first time, while we have already seen market acceptance in weekly options contracts across asset classes," the exchange's MD and CEO Vikram Limaye said in a statement.

The weekly derivatives on currency pairs apart from reducing time-related costs will also help market participants to hedge their currency exposure from short-term market movements, he added. Currently, the exchange offers cash-settled futures and options (F&O) on four currency pairs - USD-INR, EUR-INR, GBP-INR and JPY-INR and three cross currency pairs – EUR-USD, GBP-USD and USD-JPY. The contract cycle available is 12 serial monthly contracts in futures and three serial monthly contracts followed by three quarterly contracts of the cycle in options.

With multiple developments in the global market and uncertainties due to the ongoing pandemic among others unfolding this year, there has been a need felt for exchanges to make available a wider product suite to match needs of investors and hedgers, the exchange said. (PTI)