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Media Release
Sensex Futures to trade in lot size of 50 instead of a multiplier of 50 The Derivatives Segment of Bombay Stock Exchange carried out an extensive feedback exercise from the market participants of derivatives. Based on the market feed back, BSE is making the following change in the Derivatives system w.e.f. Monday, the 20th August 2001. With this change, the system would become more user friendly and volumes in the derivatives segment would improve further.In earlier case, when an investor wanted to buy one contract of futures on sensex, he was required to mention "buy one sensex futures contract". Then, he used to multiply the price with multiplier of sensex futures (50) to find the value of his position. In the new system, the investor would need to mention "buy 50 sensex". This quantity multiplied by price would give value of his position. The lot size for sensex futures would be 50. When the investor wanted to sell five contracts of futures on sensex, he was required to mention "sell five sensex futures contracts". Then, he used to multiply the price with multiplier (50) and number of contracts sold to find the value of his position. In the new system, the investor would need to mention sell 250 sensex for me. This quantity multiplied by price would give value of his position. Likewise, in case of sensex options, the investor would mention "buy 100 sensex options" instead of stating "buy 1 sensex option contract". As such, the lot size for sensex options would be 100. Similarly, when an investor bought one contract of RIL option that gave him right for 600 shares. Now, he is required to mention buy 600 RIL options. The lot size for RIL options would be 600. On the same lines, the lot size for different stock options would be their multipliers specified in the contract specifications. Dr. Manoj Vaish August 17, 2001
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