Currency Markets- Green shoots

Dharam Chand Sethia Uncategorized Leave a Comment

I came across this interesting data.Have a look.

Currency Market Growth

(Source: nseindia.com)

This is business wise growth in currency segment in leading Indian exchange – NSE. After almost 6 years this segment is better turnover and volume.A lot of development has gone into achieving this.These are good signs, and i am keeping fingers crossed.

We see success more than failures. NSE despite being a leading exchange in overall equity and derivatives segment had very few success in terms of newer categories of markets.There weekly options have become super-hit product and is also taking away attention from monthly options. Few more products that are successful in the west but aren’t working in India are – Debt markets,Volatility products,ETFs. A lot of investment and time is put by government machinery and private players too,but they haven’t meet the expected success.Commodities was a success but few bad intentions killed that space completely,and revival looks far.

However my point is it takes a lot of effort from the entire ecosystem to reach and make a healthy and vibrant market.You name it- Product,Infrastructure,Traders,Investors,Hedgers,FIIs,Governments,Regulators,Arbitrageurs,Data Vendors and many more.I am happy and thankful to all of them.

However, in the case of currency side, this is a healthy development happening.Hope this product brings more depth and participants in markets.

Once concern that i have – is this going to be a temporary thing or will it grow like this in future.A lot of this depends on regulators and participants. Regulators need to relax some norms and allow more participation,Exchanges need to bring product innovation, this will eventually lead to healthy participation.

With all this i am happy that there is something developing in the markets slowly besides only equity oriented ecosystem.

 

Happy Trading !!

 

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