Archive for November 20th, 2007

How to set-up a Currency Futures market in India?

November 20, 2007

RBI has released a very nicely done report on starting a Currency Futures Market in India. The press release is here and the report is here.

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.

Assorted Links

November 20, 2007

1. MR discusses Samuelson’s viewpoint on sub-prime crisis.

2. WSJ Blog points to what to expect in FOMC meeting to be released tomorrow.

3. WSJ Blog also pointsto an interesting development. Most historical monuments including Taj Mahal have stopped accepting dollar as the visitor’s fee.

4. ESAP Blog points to 4th inconvenient truth about India: despite the growth, the quality of services is not improving.

5. PSD Blog points out JP Morgan joins microfinance field.

6. TTR doesn’t like the much-hyped OSO

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