Bombay Stock Exchange receives in-principle nod for Exchange Traded Currency Derivatives
Mumbai, August 28, 2008: 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.”
If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.
[...] Original post by admin [...]