ABN AMRO, Citibank, HSBC and Standard Chartered are looking to structure exotic foreign exchange options on the Indian rupee following the official opening of the onshore market last Monday. Market professionals have been eagerly anticipating the start of an options market since last year (DW, 4/28/02). "There's already been a huge amount of interest," said Madhav Shankar, senior manager of derivative sales at Standard Chartered in Mumbai, adding that he expects daily volumes could reach USD80 million (notional) in the next few months. In contrast, a dealer estimated average daily (notional) fx option turnover in Singapore is USD150 million. Douglas Bongartz-Renaud, global head of fx options at ABN in Amsterdam, said "The creation of an onshore rupee options market is a very significant event."
July 14, 2003
