India’s National Stock Exchange started trading currency futures last Friday (August 29). The exchange said nearly 70,000 contracts traded on the first day. However, tight regulatory controls and the imminent arrival of competitors have led traders to question the near term prospects of NSE’s FX products — and, even, the market itself.
Although market participants said the first day’s volume should be considered a success, several criticised the small size of the Indian contracts. They are restricted by law to $1,000, roughly 1/100th the size of FX futures at Chicago Mercantile Exchange, for instance....