Eurex and Bombay Stock Exchange Partner to Launch Futures and Options on Indian SENSEX Index
Launch on 4 October 2010/ New listings are latest Eurex product offering targeting the Asia-Pacific region
Eurex: Bombay Stock Exchange (BSE), the Indian securities market operator and Eurex, the international derivatives exchange, today announced that they will launch futures and options on the SENSEX, the blue-chip index of the BSE, on 4 October 2010 at Eurex. The SENSEX Index tracks the daily performance of 30 of the largest and most actively traded companies listed on the Bombay Stock Exchange. It is a value-weighted index that represents approximately half of the float-adjusted market capitalization of all stocks traded on BSE.
“We are committed to offering our members a diverse and truly global product offering across key geographies and asset classes. The SENSEX is the most widely recognized gauge for the Indian market and complements our suite of leading equity index derivatives”, said Peter Reitz, member of the Eurex Executive Board. “By introducing futures and options on this prominent benchmark, we also will advance our efforts in the Asia-Pacific region by creating trading opportunities for customers seeking access to this fast-growing emerging economy.”
Madhu Kannan, Managing Director and CEO of the BSE, commented, “We are very pleased to be working with Eurex to develop a broader international investor base focused on the SENSEX. The SENSEX will now be trading during a larger portion of the global trading day, which will increase its appeal and value. Moreover, we see the growth of overseas liquidity in the SENSEX as helping us to broaden and deepen the market for SENSEX products within India.”
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. Two market-making schemes will be in effect until the end of December 2011 – one to support liquidity during the overlap of Indian and European trading hours and one for European market hours. The expiration dates of the options will be in the three nearest calendar months, the next three quarters and two next semi-annual expiries.
Bombay Stock Exchange is one of India’s leading exchange groups and has played a pre-eminent role in the development of the Indian capital market. BSE is a corporatised and demutualised entity, with a broad shareholder-base which includes two leading global exchanges, Deutsche Börse and Singapore Exchange as strategic partners. BSE provides an efficient and transparent market for trading in equity, debt instruments and derivatives. It also provides a host of other services to capital market participants including risk management, clearing, settlement, market data services and training. It has a global reach with customers around the world and a nation-wide presence.
The international derivatives exchange Eurex, jointly operated by Deutsche Börse AG and SIX Swiss Exchange, organizes markets globally. Eurex is home to the Euro zone interest rate and equity index benchmark derivatives. Eurex’s portfolio of markets includes International Securities Exchange, the world’s largest equity options exchange. The ECNs Eurex Repo and Eurex Bonds round out Eurex’s offering for repo and bond trading. In addition, Eurex provides an automated and integrated clearing house, Eurex Clearing AG.
Eurex’s global liquidity network comprises around 410 direct exchange members in 25 countries worldwide. For more information about Eurex, visit www.eurexchange.com.
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