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Bombay Stock Exchange Limited (BSE) today received in-principle approval from Securities and Exchange Board of India (SEBI) for setting up of an Exchange Traded Currency Derivatives Segment (CDS). This is in accordance with the recommendations laid down in the Report of the RBI-SEBI Standing Technical Committee on Exchange Traded Currency Futures, released by RBI & SEBI on May 29, 2008.
BSE will soon announce the formal launch date of B$€-CDX.
Recognizing that the worldwide average daily turnover in Exchange Traded Currency Derivatives has grown at a CAGR of approximately 23.2% as compared to the CAGR of 10.3% in the OTC Currency Derivatives market (the domestic OTC volume in Currency Derivatives is approximately US $34 billion per day), BSE is exploring strategic arrangements with certain established entities in the forex market. This, it is expected, would lend reach, domain expertise and an active participation to this evolving segment.
The Exchange Traded Currency Futures (ETCF) contracts facilitates easy access, increased transparency, much needed efficient price discovery; enable better counterparty credit risk management, wider participation, trading of a standardised product and reduced transaction costs.
Currently, institutions like Banks, Insurance Companies, Corporates, SEBI Registered Brokers, Mutual Funds, participants in bullion markets and Individuals etc. are among those eligible for trading. To facilitate active participation from these categories and provide impetus to promote this new segment, 'BSE has offered easy terms'.
Membership Details |
Membership Categories |
Upto September 15, 08
Early Bird Incentive |
After September 15, 08 |
Existing BSE Members
Trading Membership (TM)
Trading & Clearing Membership (TCM) |
Rs 1,00,000
Rs 1,00,000 |
Rs 5,00,000
Rs 5,00,000 |
New Applicants
Trading Membership (TM)
Trading & Clearing Membership (TCM)
Professional Clearing Membership (PCM) |
Rs 5,00,000
Rs 5,00,000
Nil |
Rs 7,50,000
Rs 10,00,000
Nil |
Said Mr. M. L. Soneji, Chief Operating Officer, BSE, "BSE is very optimistic about its participation in Currency Futures and would like to utilise this opportunity to provide service excellence to users and grow the segment for the benefit of business partners."
Bombay Stock Exchange Limited (BSE):
Bombay Stock Exchange, which was established as "The Native Share & Stock Brokers' Association" in 1875, is the first stock exchange in the country to have obtained permanent recognition (in 1956) from the Government of India under the Securities Contracts (Regulation) Act 1956. BSE's pivotal and pre-eminent role in the development of the Indian capital market is widely recognized. It migrated from the open outcry system to a realtime online screen-based order driven trading system in 1995.
Over the past 134 years, BSE has facilitated the growth of the Indian corporate sector by providing it with an efficient access to tap capital resources. There is perhaps no major corporate in India which has not sourced BSE's services in raising resources from the capital market.
Today, BSE is the world's number 1 exchange in terms of the number of listed companies and the world's 5th in number of transactions executed thru its trading system. The market capitalization as on December 31, 2007 stood at USD 1.79 trillion. An investor can choose from more than 4,900 listed companies, which for easy reference, are classified into A, B, S, T and Z groups.
For further information please visit: www.bseindia.com
Kalyan S. Bose,
Head - Corporate Affairs |
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August 28, 2008 |
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