The Bombay Stock Exchange would start trading dollar-denominated future contracts of its benchmark Sensex on the US Futures Exchange (USFE) from February 22, 2008 onwards. The Chicago-based exchange has won exclusive license to trade Sensex futures.
“Sensex is a brand that is universally understood,” said Kevin Devis, chairman of USFE.
The Sensex futures that will have a notional value of 40,000 and a minimum tick size of $5, will trade for 23 hours per day and settled monthly against the corresponding Sensex value.
The move could help the BSE gain some traction in the futures and options segment, which has failed to grow in volume since the launch. “This could have an impact on domestic volumes,” said Ranjnikant Patel, CEO of BSE.