Vol. 2, Issue 4 (2015)
Performance of Currency Derivative Market in India
Author(s): Tom Jacob, Thomas Paul Kattookaran, Sreejith VJ
Abstract: Extensive globalization and liberalization of Indian economy has led to an increase in the quantum of transactions in the foreign exchange market. This has led to a requirement of a broad based, active and liquid forex derivatives market to provide a basket of hedging instruments for effective management of foreign exchange exposures. The study is mainly focused on the market share of currency traded contract in different exchanges in India. Further it attempts mainly to focus on growth and performance of currency derivative market in NSE from its introduction and also analyze product wise classification of currency derivative market like currency futures and options. US Dollar - Indian Rupee (USD-INR), Euro-Indian Rupee (EUR-INR), Japanese Yen-Indian Rupee (JPY-INR) and Pound Sterling-Indian Rupee (GBP-INR) are major currency derivatives, though USDINR, pair was the leader in terms of Volumes, but these currencies added variety in the portfolio. This study can serve as a source of guide for the future study related to currency derivative.