BSE To Launch Derivatives Products
Wednesday, March 16, 2011

In a major step to enhance its derivative platform, Bombay Stock Exchange Ltd (BSE) has signed a licensing agreement with the International Securities Exchange (ISE) to launch a host of new innovative derivative products in India.

The agreement is part of on-going market development efforts between BSE and Deutsche Börse Group, which includes Eurex and ISE. As part of the agreement BSE will be seeking approval from the Securities Exchange Board of India (SEBI) to launch derivative products for Indian investors based on ISE indices, as part of BSE’s Futures and Options product-basket.

Speaking on the development, Madhu Kannan, MD and CEO of the Bombay Stock Exchange said: “We are glad to have signed this agreement with the International Securities Exchange which is part of our long term strategic initiative to offer world class investment products to investors in India. To begin with we would seek approval from the regulatory authority SEBI to introduce some indices for the Indian market.”

“Our new agreement with BSE is an exciting first step in providing investors in India with the ability to trade their views on ISE’s family of innovative indexes,” added Kris Monaco, Head of New Product Development at ISE. “ISE’s indexes provide investors with equity-based exposure to highly topical investment themes, including emerging markets, widely-traded commodities and water."

ISE was the first all-electronic options exchange in the United States and offers options trading on over 2,000 underlying equity, ETF, index, and FX products. ISE is a wholly owned subsidiary of Eurex, which itself is jointly operated by Deutsche Börse and SIX Swiss Exchange.

Bombay Stock Exchange is one of India’s leading exchange groups and provides a platform for trading in equity, debt instruments, derivatives and mutual funds. It also provides a host of other services to capital market participants including risk management, clearing, settlement, market data services and training. The BSE is a corporatized and demutualized entity, with a broad shareholder-base which includes two leading global exchanges, Deutsche Bourse and Singapore Exchange as strategic partners.