Rupee options market underway
India’s long-awaited rupee forex options market got off to a brisk start in July, although restrictions on the selling of options means that volumes have dropped off in the two months following its launch. Nick Sawyer reports
Trading volumes in India’s long-awaited rupee options market have tapered off significantly in the two months since its launch on July 7, following an initial burst of activity that saw around $250 million of deals transacted on the first day of trading.
Market participants estimate that average daily trading volumes are currently anywhere between $10 million and $30 million, with perhaps three or four deals getting written each day. That’s some way below the 10–15
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