## Friday, August 22, 2008

### Now, currency futures

In April 2007, I had written an opinion piece titled Currency futures now. Today, in Financial Express I have an opinion piece titled Now, currency futures. In some respects, we do make progress in India. Update: See this article by Rajarshi Singhal in Economic Times today (27th August).

I found a search for `currency futures' on this blog to be a mildly interesting review of the events from 2007 onwards in this space.

The restriction on open position at a client level is the GREATER of 6% of the total open interest or 5 million USD as per the joint RBI-SEBI report. The 5 mn limit might never be applied if open interest always exceeds $85 mn, which is expected to be the case. 4. Even temporary restrictions are really damaging. Lanching markets is very, very hard. At the launch date, every effort should be made to make markets work. Suppose the market fails. Then all discussions about restrictions, temporary or not, becomes moot. You have no market. The economy pays a cost (but the typical Indian government agency feels nothing). In the best of times, launching markets is hard. All possible effort to make it work should be on the table right on day one, with earnest efforts in good faith by all government agencies. Please note: Comments are moderated. Only civilised conversation is permitted on this blog. Criticism is perfectly okay; uncivilised language is not. We delete any comment which is spam, has personal attacks against anyone, or uses foul language. We delete any comment which does not contribute to the intellectual discussion about the blog article in question. LaTeX mathematics works. This means that if you want to say$10 you have to say \\$10.