MCX, FTIL shares gain on approval to launch currency options
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Shares in MCX and Financial Technologies India gained Monday after the MCX Stock Exchange (MCX-SX) received approval from the Securities and Exchange Board of India and the Reserve Bank of India to launch currency options on its platform.
At 1.32 p.m., MCX traded 2.5 per cent higher at Rs 1,079.45 on the BSE, while FTIL shares gained 2 per cent to Rs 779.30. In contrast, the broader BSE Sensex traded 1.15 per cent higher at 17,396.
Currency Options are contracts that grant the buyer of the option the right, but not the obligation, to buy or sell the underlying currency at a specified exchange rate during a specified period.
MCX-SX is controlled by the Multi-Commodity Exchange of India, India's biggest commodity bourse. MCX's promoter FTIL offers technology and other solutions for its exchange businesses.
MCX had earlier raised $135 million in an initial public offering in the local market earlier this year.
The approvals will allow the exchange to expand its currency derivatives business by introducing options in the dollar-rupee currency pair, MCX-SX said in a statement, adding that it will soon announce the launch date for live trading.
Last month MCX-SX, which began trading in 2008 with currency futures, said it had won approval from regulators to start trading equities, equity futures, interest rate futures and wholesale debt products.
(With inputs from Thomson Reuters)