BSE maintains leadership position with launch of Cross Currency Derivatives

Bombay Stock Exchange (BSE) on Tuesday launched cross-currency derivatives and cross rupee options with a bang. The exchange recorded highest turnover among other exchanges. BSE Introduces EURUSD, GBPUSD & USDJPY futures & options contracts today. The trading in these contracts is available between 9.00 am and 7.30pm. Availability of such instruments on exchanges will help market participants to hedge their foreign currency exposures effectively. BSE retained its leadership position with market share of 50.40% on cross currency derivatives. BSE reported a daily average turnover of around Rs 1098 crore in cross currency derivatives higher than NSE’s Rs 1080 crore. Individually, the turnover of cross currency pairs at BSE was around Rs 667 crores for EURUSD, Rs 390 crore for GBPUSD & Rs 41 crore for USDJPY contracts. In order to encourage wide spread participation, BSE decided to waive off transaction charges on cross currency derivative contracts from February 27, 2018 till August 31, 2018. As an exchange philosophy, this will reduce the trading and hedging costs for various entities, including small and medium enterprises. The move is also based on the feedback received from the market participants and is aimed at improving liquidity in the cross currency derivatives. Recently, BSE reported a daily average turnover of Rs 24,576.87 crore in its currency segment in the month of January 2018, higher than NSE’s Rs 21,871.05 crore. BSE is already clocking market share of more than 50% in currency derivative segment.