MCX Stock Exchange Limited (MCX-SX), India’s new stock exchange, commenced operations in the Currency Derivatives (CD) segment on October 7, 2008 under the regulatory framework of Securities & Exchange Board of India (SEBI) and Reserve Bank of India (RBI). The Exchange is recognised by SEBI under Section 4 of Securities Contracts (Regulation) Act, 1956. In line with global best practices and regulatory requirements, clearing and settlement is conducted through a separate clearing corporation, MCX-SX Clearing Corporation Ltd. (MCX-SX CCL).
MCX-SX, which had started operations in Currency Futures segment, has been witnessing a steady and significant growth in average daily turnover and open interest ever since its inception. The average daily turnover (ADT) of currency futures stood at Rs 12,430.48 crore at the end of September 2012, a significant increase from an ADT of Rs 324.78 crore in the first month of operations. Completing the spectrum of currency risk management products, MCX-SX recently introduced its first differentiated product in Currency Options with a smaller tick size of 10 bps.
The currency derivatives segment at MCX-SX is supported by a strong membership base and witnesses a nation-wide participation. At the end of September 2012, MCX-SX had 751 members and saw participation from 734 towns and cities across India.
MCX-SX received permissions to deal in Interest Rate Derivatives, Equity, Futures & Options on Equity and Wholesale Debt Segment, vide SEBI’s letter dated July 10, 2012.