Additionally, Reuters has introduced its cross matching service, enabling banks in India to trade approximately 39 global currencies in Spot, and 29 currencies in forwards with global financial institutions including the US Dollar, Euro, Japanese Yen, and Sterling. Previously, banks in India could only trade the USD/Indian Rupee spot matching.
R.N. Subramanian, Dealer, Canara Bank, said: "The Foreign Exchange Market in India has benefited a lot from Dealing 3000 Spot Matching System. The inclusion of forwards on its matching system has seen increasing interest and when customisation to Indian month end convention is made available, volumes are likely to go up."
Internationally most countries operate on a rolling forward basis which means the trade settlement is one month from trade. India operates on month-end forwards which means settlement is on the calendar month end basis.
Mitya New, Managing Director, Reuters South Asia, said: "Twenty-eight major banks in India are now using Reuters Dealing Forwards Matching System. In the meantime, Reuters is investing significantly to customize our global forwards matching software to meet local Indian forwards trading conventions requirements by year-end, as an interim solution until India converts to international trading conventions in the next two to three years."
Reuters electronic matching service has established itself as the reference point for spot USD/Indian Rupee and a total of 30 banks in India are actively contributing average monthly trading volumes of about USD 10 billion.