BSE to launch IRF (Interest Rate Futures) from 20th January
Posted on: 11/Jan/2014 6:24:53 PM
BSE ( Bombay Stock Exchange )informed today that ‘live’ trading of IRF will commence operating on 20th January – in long tenure of 10-year government bonds. BSE has already obtained permission from SEBI (Securities and Exchange Board of India) for introduction of this facility.
BSE MD & CEO, Mr. Ashishkumar made this announcement in the function organized by the Association of National Exchange Members of India (ANMI).
NSE is set to begin live operation from 21st January and MCX-SX will also start this facility in January.
Market regulator has granted permission the stock exchanges to introduce cash-settled IRFs on 10-year government bonds. An IRF is generally a contract between a buyer and a seller agreeing to the future delivery of any interest-bearing asset such as government bonds.
This will facilitate market operators to hedge risks from the fluctuation of other related financial elements. It would also benefit banks, brokerage houses, insurance companies and primary dealers, among others.
