In the exchange traded derivative space, a more liberal approach has been adopted and in the recent past. While currency futures and interest rate futures have already been introduced on exchanges, currency options on USD/INR are in the process of being introduced.
While it is expected that these markets fulfil the genuine hedging requirements of the participants, it is not possible to replicate the discipline of ensuring underlying commercial transactions which is possible in the OTC market. Accordingly, the interest rate and currency futures markets operate in parallel with the OTC markets with different set of stipulations. 3.