Sensex futures goes live in Europe today
Investors in Europe can now bet on Indian stocks as the country's oldest bourse the Bombay Stock Exchange today launched the trading of Sensex futures and options on the European derivatives exchange Eurex.business Updated: Oct 04, 2010 22:38 IST
Investors in Europe can now bet on Indian stocks as the country's oldest bourse the Bombay Stock Exchange today launched the trading of Sensex futures and options on the European derivatives exchange Eurex.
"Sensex futures and options have started trading on Eurex from today," a BSE official said.
Eurex is one of the world's leading derivatives exchanges and is jointly operated by the Deutsche Borse and SIX Swiss Exchange.
Eurex offers a broad range of international benchmark products and operates the most liquid fixed income markets in the world, featuring open and low-cost electronic access.
Trading volume on the Eurex is over 1.5 billion contracts a year.
The new contracts will be denominated in US dollars and settled in cash. The futures will have maturity dates of the three nearest months, and the following March, June, September and December, the bourses had said earlier.
The expiry dates of the options will be in the three nearest calendar months, the next three quarters and two next semi-annual expiries.
The Sensex tracks the daily performance of 30 of the largest and the most actively traded companies listed on the BSE, the oldest bourse in Asia.
The benchmark index today ended 20,475.73, up 31 points. This is the first time that the BSE Sensex is being traded outside India.
Deutsche Borse AG operates the Frankfurt Stock Exchange, the Europe's biggest exchange in terms of market valuation.
The average daily turnover in futures and option market in India is close to Rs 1 lakh crore and NSE has the monopoly in the segment.
In March, the Chicago Mercantile and NSE tied up for cross listing arrangement for index futures.
Under the deal, NSE's benchmark Nifty will be available for trade in the US from this month.
The NSE will also provide trading in futures contracts of S&P 500 and Dow Jones Industrial Average (DJIA), two of the world's most influential market indices--for which CME holds the license.
In February-March 2007, Deutsche Borse AG and Singapore Exchange Ltd acquired 4.98 per cent each of BSE's shares at the time when the exchange was demutualised. Currently, six foreign investors hold 25.65 per cent of BSE and five Indian institutions hold 12 per cent.