Incidentally SEBI proposed (SEBI press release is here) launching certain derivatives in India. The release also mentioned about currency futures. Now currency is in the domain of RBI and stock exchanges under SEBI, so in case currency futures are going to be launched on existing stock exchanges, it would have been interesting.
But this RBI report has put a stop on all the possible speculations and the report suggests that RBI is going to be the sole of regulator of currency futures.
I was also wondering whether RBI rushed the report after SEBI’s initiative. But RBI had already mentioned in the Mid-term Monetary Policy 2007 that RBI would put the report on currency futures in public domain on Nov., 15, 2007. So, no problems there as well.
Ok, now to the main point. I have just taken a quick glance of the report and it looks like a very good one. It explains the working of currency futures market and the nitty grtitties in a very simple language. The experts would be out with the criticisms on the report and I am no expert on the subject. I will try and post their comments if any.
But, the report definitely gives you a format for such kinds of studies. Highly recommended reading.