Average daily trading volume surge nearly 3 times on NSE

Average daily trading volume in interest rate futures (IRF) on NSE surged nearly three times to Rs 2,562 crore during the first seven months of this year.

The average daily turnover stood at Rs 984 crore in January-July of 2014.

Besides, average daily volume on NSE soared over two times to Rs 2,547 crore in April-July of the current fiscal.

"Now that more products are available at the exchange with different tenures, there are more choices available in the IRF segment," NSE Business Development Chief Ravi Varanasi said in a statement.

"As interest rate affects almost everyone, participation in this segment is increasing," he added.

NSE had introduced two new IRF contracts -- one bearing 8.27% interest and maturing in 2020 and another with 7.78% maturing in 2030.

With these, four different interest-bearing government securities are now traded on the exchange platform.

An IRF contract is an agreement to buy or sell a debt instrument at a specified future date at a fixed price.

It can be used by an entity to offset the risk associated with interest rate movements.