MCX-SX started live operations on October 7, 2008 by launching monthly contracts in the USDINR currency pair under the regulatory framework of Securities and Exchange Board of India (SEBI), and Reserve Bank of India (RBI). Consequently, the stock exchange expanded its currency derivatives offerings to Euro-Indian Rupee (EURINR), Pound Sterling-Indian Rupee (GBPINR) and Japanese Yen-Indian Rupee (JPYINR).

Each of these currency contracts on MCX-SX has a life of 12 months from the month in which it is launched.

• Presently, all futures contracts on MCX-SX are cash settled. There are no physical contracts.
• All trade on MCX-SX takes place on its nationwide electronic trading platform that can be accessed from dedicated terminals at locations of the members of the exchange.
• All participants on the MCX-SX trading platform have to participate only through trading members of the Exchange.
  • Participants have to open a trading account and deposit stipulated cash/collaterals with the trading member.
• MCX-SX stands in as the counterparty for each transaction; so participants need not worry about default.
  • In the event of a default, MCX-SX will step in and fulfil the obligations of the defaulting party, and then proceed to recover dues and penalties from them.
• Those who entered either by buying (long) or selling (short) a futures contract can close their contract obligations by squaring-off their positions at any time during the life of that contract by taking opposite position in the same contract.
  • A long (buy) position holder has to short (sell) the contract to square off his/her position or vice versa.
  • Participants will be relieved of their contract obligations to the extent they square off their positions.
• All contracts that remain open at expiry are settled in Indian rupees in cash at the reference rate specified by RBI.