MC Exclusive| Brokerages ask currency derivatives dealers to shift focus to equities, commodities

In response to reduced volumes in currency derivatives following new RBI regulations, at least three Mumbai-based brokerages have instructed their currency derivatives dealers to shift focus towards equities and commodities, as reported by sources familiar with the matter on June 17.

The open interest and average turnover in currency derivatives have markedly declined since the implementation of the RBI norms. Futures open interest on June 17 was 43,22,828 compared to 63,71,215 on January 5, with daily turnover dropping from Rs 26,380.56 crore to Rs 4,369.40 crore.

With limited activity in currency derivatives, firms are redirecting dealer attention to other portfolios amidst expectations that trading volumes may only marginally increase due to rupee volatility.