BSE Allows Trading in Additional Stocks in the Equity Derivatives Segment
Following approval from Capital market regulator SEBI, Bombay Stock Exchange Ltd.announced June 9 the introduction of additional stocks for trading in its Equity Derivatives segment. Consequently, futures and options on stocks currently eligible on all stock exchanges will be available for trading on BSE. These will be available for trading from August 2011 contracts and onwards. All these instruments will be settled through physical delivery, another initiative launched by BSE earlier this year.
The move comes soon after a recent circular from SEBI allowing exchanges to implement Liquidity Enhancement Schemes (LES) for equity derivatives. Along with other innovations like Smart Order Routing (SOR), these initiatives will provide a fillip to BSE’s F&O segment.
Speaking on the development, Madhu Kannan, MD & CEO of the Bombay Stock Exchange said,
“As of today, we are introducing 135 additional eligible scrips to our existing list of 84 scrips in BSE Equity Derivatives segment, having expiry in August 2011 and onwards. With recent positive developments designed to augmenting trading in the F&O segment, we are working towards making BSE market-ready for increased participation in our Equity derivatives business.”