India’s MCX Stock Exchange is launching futures trading in Euro-Indian Rupee, Pound Sterling-Indian Rupee and Japanese Yen-Indian Rupee currency pairs with effect from 1 February 2010.

This was made possible based on the policy and approval of RBI and SEBI.

The exchange will currently offer 12 contracts and six spread contracts for each of the new currency pairs. All the contracts will have a tick size of 0.25 paise or INR 0.0025. These contracts will be cash settled in rupees.

Joseph Massey, managing director and chief executive of MCX Stock Exchange, says: “We are grateful to SEBI and RBI for allowing us to launch new pairs in exchange-traded currency derivatives. The move will go a long way in helping market participants, especially international traders, hedge against cross-currency volatility and mitigate risk in export and imports across all major traded currencies.”

In the USD/INR segment, MCX Stock Exchange has participation from over 478 cities and towns across India through banks, corporate, physical market stakeholders and financial sector users. The exchange was launched one year ago.