Standard Chartered Bank said it has completed one of India’s first interest rate futures transactions in the new form with the National Stock Exchange on Monday.
The global banking major traded one contract at Rs 94.50 for a notional amount of Rs two lakh, a press release issued here said.
An interest rate future is a contract to buy or sell a debt instrument (10-year government bond) at a price decided in advance for delivery at a future date.
By locking into a price, the contract helps eliminate the interest rate risk. The transaction takes place via the stock-exchange which ensures delivery.
“The addition of interest rate futures enhances Standard Chartered Bank’s suite of risk management products and services, which are customised to suit our proprietary business requirements and risk management capabilities,” the bank’s Financial Markets India and South Asia Regional Head Hemant Mishra said.