Derivatives professionals in India expect a domestic interest rate options market to take off by the end of the year. "Change is in the air," said a senior official at a European bank. Market liberalization is gaining momentum, following positive remarks made by the finance minister about over-the-counter derivatives in the annual budget speech (DW, 3/4).
The onshore interest rate swap market continues to grow and an onshore FX options market has taken flight since late 2003 (DW, 7/13/03). Interest rate options are seen as the next step in market development, potentially to be followed by credit derivatives in the coming years, noted fixed income traders.