RBI report lays ground for trading new derivatives
Allowing interest rate options could give firms better hedging opportunities, group says
Indian financial institutions may soon be allowed to trade a wider range of interest rate options, after a working group of the Reserve Bank of India (RBI) recommended expanding the list of instruments firms can use to hedge risks.
The working group presented its findings on February 8, proposing to allow the trading of options, caps, floors, collars and swaptions both on exchanges and over-the-counter. It suggested more complex option structures could be introduced later.
Currently, the only
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