Mumbai, Aug 31 (PTI) The National Stock Exchange today launched Interest Rate Futures, a product that enables hedging against interest rate risks, that would help further deepen the country's financial markets.
Interest rate risk is the uncertainty in the movement of interest rates, which have never been constant in the past and presumably not remain constant in the future as well.
Banks, primary dealers, mutual funds, insurance companies, corporate houses, financial institutions and member-brokers will be eligible to participate in IRF trading -- available in futures contracts worth Rs two lakh each with a maximum maturity of 12 months.
IRF is the world's most widely-traded derivative tool. The interest rate futures contracts at NSE would be physically settled by delivery
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