Can Banks trade on a Currency Futures Exchange?
Banks are allowed by the Reserve Bank of India to participate in the currency futures market. The AD Category 1 banks that fulfill the regulatory requirements are eligible to become clearing members and/or trading members on USE. All other banks can participate in the futures trading as clients only.
Are there international exchanges also dealing in currency futures?
Currency is the most liquid asset class amongst all underlying assets globally. Chicago Mercantile Exchange (CME), Euronext, LIFFE, Tokyo Financial Exchange are a few of the many exchanges that trade in currency futures.
How does the Indian Forex Market Work?
The Indian Forex market is regulated by the Foreign Exchange Management Act, 1999. The regulatory authority for the Indian Forex market is the Reserve Bank of India (RBI). However the Exchange traded currency futures market is regulated by SEBI through recognized stock exchanges based on the rules specified in the RBI-SEBI Standing Technical Committee Report on Exchange Traded Currency Futures.