Dear Traders,
If you are a Trader in the Currency segment, chances are you may be aware of the recent RBI circular dated January 5th, 2024 that requires Currency segment traders to demonstrate exposure to contracts that they have traded to participate in the currency derivatives segments provided by exchanges.
Here, foreign currency exposure means any exposure arising from foreign currency transactions or contracts. This said circular comes into effect from 5th April, 2024.
As a proactive measure, we are pausing any fresh positions to be taken in the Currency Segment for both BSE & NSE Exchanges in Futures as well as Options trading effective 2nd April 2024. Existing open positions are being put on the Square-Off mode where participants will be able to exit their existing positions when markets are open, until 12 noon of 4th April 2024. Any open currency position post the above timeline, will be automatically squared off by our RMS systems.
Additionally, we are further awaiting clarification from the regulatory authorities on this circular and based on that will communicate any changes or updates as they shall happen.
Thank you,
Kuldeep
Risk Team