Reserve Bank of India allows banks to trade in currency options
MUMBAI | Thu Oct 28, 2010 6:30pm IST
MUMBAI (Reuters) – The Reserve Bank of India (RBI) on Thursday allowed banks to be trading and clearing members of exchange-traded currency options.
The following is the press release.
RBI/2010-11/248
DBOD.No.BP.BC.51 / 21.06.101 / 2010-11
October 28, 2010
The Chairman and Managing Directors /
Chief Executive Officers of
All Scheduled Commercial Banks
(excluding RRBs and LABs)
Dear Sir,
Introduction of Exchange Traded Currency Options –
Permitting Banks to Participate in Currency Options
on Recognized Stock / New Exchanges
Please refer to RBI/2010-11/147 A.P. (DIR Series) Circular No. 05 dated July 30, 2010 containing guidelines on Trading of Currency Options on Recognised Stock / New Exchanges issued by Foreign Exchange Department (copy enclosed). In this connection, we advise as under:
1.
AD Category - I commercial banks which fulfill the minimum prudential requirements under para 6(ii) of the Foreign Exchange Department circular referred to above, are hereby permitted to become trading and clearing members of the exchange traded currency options market of the recognized stock exchanges, on their own account and on behalf of their clients.
2.
All other scheduled commercial banks are permitted to participate in the exchange traded currency options market only as clients.
Yours faithfully,
(B. Mahapatra)
Chief General Manager-In-Charge
MUMBAI | Thu Oct 28, 2010 6:30pm IST
MUMBAI (Reuters) – The Reserve Bank of India (RBI) on Thursday allowed banks to be trading and clearing members of exchange-traded currency options.
The following is the press release.
RBI/2010-11/248
DBOD.No.BP.BC.51 / 21.06.101 / 2010-11
October 28, 2010
The Chairman and Managing Directors /
Chief Executive Officers of
All Scheduled Commercial Banks
(excluding RRBs and LABs)
Dear Sir,
Introduction of Exchange Traded Currency Options –
Permitting Banks to Participate in Currency Options
on Recognized Stock / New Exchanges
Please refer to RBI/2010-11/147 A.P. (DIR Series) Circular No. 05 dated July 30, 2010 containing guidelines on Trading of Currency Options on Recognised Stock / New Exchanges issued by Foreign Exchange Department (copy enclosed). In this connection, we advise as under:
1.
AD Category - I commercial banks which fulfill the minimum prudential requirements under para 6(ii) of the Foreign Exchange Department circular referred to above, are hereby permitted to become trading and clearing members of the exchange traded currency options market of the recognized stock exchanges, on their own account and on behalf of their clients.
2.
All other scheduled commercial banks are permitted to participate in the exchange traded currency options market only as clients.
Yours faithfully,
(B. Mahapatra)
Chief General Manager-In-Charge