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Friday, December 21, 2012

Next big development in the global market for the rupee

The next interesting development after ICE trading of rupee futures: CME will launch rupee futures soon also. See CME follows ICE into rupee futures by Tom Osborn on Financial News.

ICE and CME are the world's top exchanges and they are serious rivals for the global rupee market. These recent developments add up to a substantial change in the outlook for the rupee as an internationally traded currency. The rupee will become more prominent as a globally traded and liquid market. And, ICE and CME are likely to do well, thus accelerating the decline of the onshore market.


  1. What will this mean for the rupee... Will it retain its value as per the domestic market or will it change as per the markets globally? Also does this have any impact on the valuation of the currency?

  2. afaik, an Indian citizen can't hold a margin account offshore. That may be holding back some of the onshore trading from moving offshore. I don't understand why they have that rule? As an Indian citizen, why can't I hold a margin account offshore? My interest is not in leveraged trading. For a retail investor, the main benefit of a margin account is that one does not have to wait for settlement of funds before trading again with those funds. That is mighty useful, as otherwise one has to wait for 3 days for trades to settle which is an eternity in these times, and entirely unnecessary! Why do we Indians accept such dumb and crappy rules?


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