These economies are the future growth engines of the global economy. Finally, the reform of the international monetary system should be advanced. Currently, a bulk of international trade and financial transactions are priced and settled in U.S. dollar. It is also the most important reserve currency.
The biggest challenge in designing a framework for exchange traded currency derivatives in India was the prevailing regulatory system for the OTC products. While for entering into an OTC derivative, the presence of an underlying exposure is a regulatory requirement, it was considered not feasible to insist on this requirement for the exchange traded derivative products.