NSE launches futures on overnight call rate (MIBOR)

Mumbai, December , 2018: National Stock Exchange of India Ltd (NSE), India’s leading stock exchange, today introduced futures on overnight call rate (MIBOR). NSE is the first Exchange to introduce exchange-traded futures on an overnight rate in India.  

NSE launches futures on overnight call rate (MIBOR)

The overnight Mumbai Interbank Outright Rate (MIBOR) is calculated from the actual transactions in the call money market on the NDS-call platform. The call money market allows institutions such as banks, primary dealers to borrow and lend money on an overnight basis and had average daily volumes around Rs.16,464 crores from April 2018 – September 2018.  Financial Benchmarks India Pvt. Ltd (FBIL) announces the Overnight MIBOR on a daily basis except holidays.


The futures on overnight call rate (MIBOR), provides participants an opportunity to manage risk exposures and express a view on money market interest rates. Being exchange traded, the futures on MIBOR rate are standardized, cost effective, transparent and have settlement guarantee. The MIBOR futures are part of the currency derivatives segment.  


Speaking on the occasion, Mr Vikram Limaye, MD&CEO, NSE said: “It is important to develop tools to help institutions manage interest rate risk.  The futures on MIBOR, which is one of the key barometers of India’s overnight borrowing and lending, is being introduced with the objective of providing a hedging instrument for interest rate risks. NSE remains committed to bringing risk management tools to assist financial market players in managing their interest rate risks” 


On the first day, turnover (notional) in MIBOR futures was Rs. 185 crores.  The participation was from financial institutions like banks, primary dealers and from the brokers. The first few members who have traded include East India Securities Ltd., Edelweiss Securities Ltd., GRM Securities Private Ltd., ICICI Bank Ltd., ICICI Securities Primary Dealership Ltd., J M Global Equities Private Ltd.  

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