Description

NSE revises conversion ratios for USD 1 million equivalent to EUR, GBP, and JPY for Currency Derivatives segment position limits, effective April 29, 2026.

Summary

NSE’s Surveillance department has revised the conversion ratios used to calculate USD 1 million equivalent for the Currency Derivatives segment. These updated ratios affect position limit calculations for entities trading across exchanges and will be effective from April 29, 2026. This circular supersedes the conversion factors issued on December 26, 2025 (NSE/SURV/72010).

Key Points

  • USD 1 million is now equivalent to EUR 0.85 million
  • USD 1 million is now equivalent to GBP 0.74 million
  • USD 1 million is now equivalent to JPY 156.59 million
  • Overall position limit across exchanges remains USD 100 million equivalent
  • Entities exceeding USD 100 million equivalent must disclose underlying exposure to their Trading Member

Regulatory Changes

The revised ratios update the earlier conversion factors published in NSE/SURV/72010 dated December 26, 2025. The underlying position limit framework referenced in NSE/SURV/29575 dated April 29, 2015 (para 5) remains unchanged. The change reflects current market exchange rate levels for EUR, GBP, and JPY against USD.

Compliance Requirements

  • All NSE members and their clients must use the new conversion ratios from April 29, 2026 onwards
  • Entities must ensure aggregate positions across exchanges remain within USD 100 million equivalent
  • Clients with positions exceeding USD 100 million equivalent must provide disclosure of underlying exposure to their Trading Member as per existing practice
  • Positions must remain within limits prescribed in para 5 of circular NSE/SURV/29575 dated April 29, 2015

Important Dates

  • March 25, 2026: Circular issued
  • April 28, 2026: Last day the previous conversion factors (from NSE/SURV/72010 dated December 26, 2025) remain applicable
  • April 29, 2026: New conversion ratios become effective

Impact Assessment

This circular has a moderate operational impact on market participants active in the Currency Derivatives segment. Entities with large cross-currency derivative positions (particularly in EUR, GBP, or JPY contracts) will need to recalculate their USD equivalent exposure using the new ratios to ensure continued compliance with the USD 100 million position limit. The change is routine in nature, reflecting updated forex reference rates, and does not alter the underlying regulatory framework or limit structure.

Impact Justification

Affects all NSE members trading in Currency Derivatives segment by updating conversion ratios used to calculate USD 100 million equivalent position limits across exchanges. Operationally significant for entities with large forex derivative positions.