BSE, Asia’s oldest and now world’s fastest exchange with the speed of 6 microseconds is set to launch trading in commodity derivatives from October 1st 2018. Launch will be marked by way of a bell ringing ceremony at BSE’s International Convention Hall at 10 am on October 1st 2018.
BSE will begin trading in commodity derivatives with non-agriculture commodities like metals initially, followed by agri commodities subsequently. BSE has also received SEBI approval for launch of delivery based futures contract in Gold (1 kg) and Silver (30 kg) from October 1st 2018. BSE firmly believes that its commodity derivatives platform will help in efficient price discovery, reduction in timelines, cost effective, user-friendly, robust risk management system and wider market penetration. In order to encourage more participants to join the commodity markets, BSE has decided to waive off the transaction charges for the first year of commodities market operations.
Commenting on the launch of commodity derivatives trading, Ashishkumar Chauhan, MD & CEO, BSEsaid, “We believe BSE’s foray into commodities derivatives from October 1, 2018 will enable many more participants to join the commodities market and enhance the linkages between underlying spot markets and commodity derivatives markets in each commodity BSE introduces in this market. We hope to make Indian markets through BSE as the price setters in commodities markets going forward using our superior technology and reach across nooks and corners of India.”
BSE provides investor with an end to end, integrated transaction processing, with services ranging across the spectrum- from pre trade order management to trading, real time risk management to post trade clearing, and settlement through a central counter party mechanism along with a nationwide depository for facilitating the securities, transaction in a dematerialised form. BSE along with clearing corporation ICCL and depository CDSL, are the financial market infrastructure institutions in capital market.
