Indian rate options underlyings insufficient, say traders

Lack of long-term reference points could hold back proposed market

stranded indian tricycle
Planned options market could face a slow start, according to banks

Participation in India's proposed interest rate options market could be restricted by a lack of longer-term reference points in the underlying benchmarks, banks have warned.

The Reserve Bank of India (RBI) published a discussion paper in February setting out plans to launch an options market to allow banks and corporates to better manage interest rate risk. It plans to start with call and put options, floors, collars and swaptions, then introduce more complex structures further down the line.


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