Bombay Stock Exchange (BSE) and Eurex, an international derivatives exchange, have partnered to launch futures and options on the SENSEX, the blue-chip index of the BSE, on October 4, 2010 at Eurex.
The SENSEX Index tracks the daily performance of 30 of the largest and most actively traded companies listed on the BSE.
According to Eurex, the new contracts will be denominated in US dollars and settled in cash. The futures will have maturity dates of the three nearest months, and the following March, June, September and December.
Two market-making schemes will be in effect until the end of December 2011, one to support liquidity during the overlap of Indian and European trading hours and one for European market hours.
The expiration dates of the options will be in the three nearest calendar months, the next three quarters and two next semi-annual expiries.
Madhu Kannan, managing director and CEO of the BSE, said: “We are very pleased to be working with Eurex to develop a broader international investor base focused on the SENSEX. The SENSEX will now be trading during a larger portion of the global trading day, which will increase its appeal and value.”
Peter Reitz, member of the Eurex executive board, said: “By introducing futures and options on this prominent benchmark, we also will advance our efforts in the Asia-Pacific region by creating trading opportunities for customers seeking access to this fast-growing emerging economy.”