BSE’s newly-introduced commodities derivatives trading platform with futures trading in gold and silver contracts hits fresh all-time peak with the traded value logging INR 578 Cr on Tuesday, 23rd October 2018. The gold contracts recorded a traded volume of 1623 lots with a value of INR 521.4931 Cr and the silver contracts clocked a traded volume of 488 lots with a value of INR 57.18887 Cr.
The leading exchange began trading in commodity derivatives on October 1, 2018, after gaining SEBI’s approval to launch a delivery-based futures contract in gold (1 kg) and silver (30 kg). BSE’s announcement to waive transaction charges has attracted a lot of participants, including all types of brokers and traders, who are cost sensitive due to their nature of business. Out of the 442 expressions of interest received from members, BSE has registered 170 trading members and 27 clearing members in the commodity derivatives segment. Many more members are expected to join the bourse in the near future.
BSE has become the second largest commodities exchange in the Indian domestic area. Lately, the bourse had received market regulator Sebi’s approval to launch Oman Crude Oil contract on the exchange. Several members of BSE have also initiated algorithm trading in this segment with a few of them already having received the approval and started their trading.
The leading bourse has plans to introduce base metal contracts and agri commodities in the near future for which it has collaborated with several associations. BSE has entered into a licensing agreement with the London Metal Exchange, a premier base metals-focused commodities exchange. It has also associated with Bombay Metal Exchange for base metal contracts and with the Rajkot Commodity Exchange, Federation of Indian Spice Stakeholders, Soybean Processors Association of India and Cotton Association of India to launch agri commodities. Further, BSE envisages launching many commodities out of the 90+ commodities approved by Sebi.
