August 27, 2009

NSE’S NEWS UPDATE

Launch of Interest Rate Futures trading

The National Stock Exchange of India has announced commencement of trading in Interest Rate Futures w.e.f. August 31, 2009. With this announcement NSE becomes the first exchange in India to launch trading in interest rate futures. Initially, futures based on 10 year Notional coupon bearing Government Of India security (Notional coupon of 7% with semi-annual compounding) shall be available. Trading cycle will consist of fixed quarterly expiries with a maximum expiration of one year. The contracts will expire seven working days prior to the last business day of the expiry month. These contracts shall be settled by physical delivery during the expiry month.