Volumes in currency derivatives market have fallen sharply since Sebi stepped in last week to curb speculative trades, even as some commodity brokers are being probed for possibly manipulations in forex trading.
The data shows that average daily volumes for currency options have fallen by as much as 79 per cent for one of the exchanges so far in July, but another bourse have witnessed a hefty drop of only 35 per cent.
In futures segment also, the fall in average daily volume is very divergent within the two exchanges from 60 per cent in one bourse to 42 per cent at the other. These trends are in sharp contrast to those witnessed till last month.
While the volumes have been on the downward path since the beginning of the month, a much steeper fall has been noticed since July 11, when Sebi’s orders for curtailing the exposure of brokers and traders and increasing their margins for forex’s future and options trade came into effect.
The volumes fell even more sharply in today’s trade following reports that possible forex derivative manipulation have come under regulatory scanner.
According to sources, at least four commodity brokers, including one from a large brokerage group, are being probed for trading through separate client codes -- other than their allotted Unique Client Codes (UCC) -- to conceal their overall positions and avoid the curbs imposed by Sebi.