With their new currency derivative segment MCX-SX has ruled over NSE which used to rule the stock markets. Jignesh Shah has a major hand in the success and prosperity of MCX-SX, and he was the one who supported this exchange platform with the help of his trading firm FTIL.
The turnover also has exceeded in the span of these last 18 months and the two players of this segment are MCX-SX and NSE but due to their new share growth in the capital market strategy MCX-SX has emerged victorious in the whole war. The percentage is 30% higher since the month of February.
Share market experts have claimed that MCX traders are going to be more active in the currency future from what they are now. Therefore, there are more chances for NSE to lose their traders to MCX-SX. Mr. Pramit, the CEO of Alpari India on this event said that the NSE derivative market is mostly comprised of foreign and domestic investors. DII, who is also one of their investors does not seem to participate, due to the lack of their currency exposure and FII due to some restrictions from RBI, which eventually will lower the shares of NSE in the market.
According to Mr. Vikram Murarka, speculative trading is the reason behind the increasing volume of the future currency market, which in turn demotivates the interested exporters and importers as they have to visit the bank for even minor dollar payment. It could later be the cause of these people to shift to MCX-SX for the trading purpose.
The Currency derivative head of Bonanza Portfolio, Jatin Damani says that about 25% currency futures volume would support corporate hedging, whereas about 78% supports arbitrage of commodity traders, retail trading, and proprietary trading.
The contracts in new currency pairs could also be a factor supporting this sudden shift from NSE to MCX-SX.
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