BSE Inks Agreement with International Securities Exchange to Launch Derivatives Products in India
In a major step to enhance its derivative platform, Bombay Stock Exchange Ltd today announced that it has signed a licensing agreement with the International Securities Exchange (ISE) to launch a host of new innovative derivative products in India. The agreement is part of on-going market development efforts between BSE and Deutsche Börse Group, which includes Eurex and ISE.
As part of the agreement BSE will be seeking approval from SEBI to launch derivative products for Indian investors based on innovative ISE indices, as part of BSE’s Futures and Options product-basket.
Speaking on the development, Madhu Kannan, MD & CEO of the Bombay Stock Exchange said, “We are glad to have signed this agreement with the International Securities Exchange which is part of our long term strategic initiative to offer world class investment products to investors in India. To begin with we would seek approval from the regulatory authority SEBI to introduce some indices for the Indian market.”
“Our new agreement with BSE is an exciting first step in providing investors in India with the ability to trade their views on ISE’s family of innovative indexes,” said Kris Monaco, Head of New Product Development at ISE. “ISE’s indexes provide investors with equity-based exposure to highly topical investment themes, including emerging markets, widely-traded commodities and water. We look forward to working with BSE as they broaden their derivatives business with new products based on ISE’s indexes.”
ISE was the first all-electronic options exchange in the United States and played an important role in transforming the options industry by creating efficient markets through innovative market structure and technology. ISE’s index team has the ability to create and maintain innovative indexes that are based on exchange-listed instruments that span asset classes and geographies. ISE lists a suite of options products based on its index portfolio.