Media Release

BSE signs Memorandum of Understanding with Korea Exchange (KRX)

KRX to launch S&P BSE Sensex based derivatives contracts at KRX

Mumbai, Thursday, April 28 2016: BSE Asia first stock exchange and now world’s fastest exchange with the speed of 6 microseconds today has entered into Memorandum of Understanding with the Korea Exchange (KRX) in Seoul to extend their cooperation by listing S&P BSE Sensex based derivatives contracts.  The agreement will further the development of derivatives markets in India and South Korea. It will encourage the sharing of information, and foster new opportunities for the exchanges and their respective issuers. 

On the occasion, Mr. Ashishkumar Chauhan, MD&CEO, BSE, said, “The MoU between BSE and KRX represents a significant step in integrating two of the fastest growing economies of the world, India and South Korea. We are very pleased to sign this memorandum of understanding with one of the world’s largest stock exchange by market capitalization. We are sure that this integration will go a long way in building both our expertise- financially and technologically.”

Mr. Kyungsoo Choi, Chairman and CEO of Korea Exchange, said, “India is growing to be one of the largest markets in the world thanks to stable Indian economic growth. KRX is very pleased to list a futures product based on S&P BSE Sensex index, which is the representative index of Indian equities market. I expect that the listing will facilitate better price discovery and create arbitrage opportunities because the two markets have overlapping time zones."

The MoU also includes information sharing by both parties to promote each other’s understanding of the products listing process and the markets functioning. BSE & KRX will also support eachother for investor relations activities of cross-listed products and assist with cross-border supervision & enforcement.

The two have also agreed to conduct joint research in the area of derivatives markets and to support the development of new products, experience sharing and cooperation on IT system.

About BSE

BSE (formerly Bombay Stock Exchange Ltd.) – Established in 1875, BSE Ltd. (formerly known as Bombay Stock Exchange Ltd.), is Asia’s first & now world’s  fastest Stock Exchange with the speed of 6 microseconds BSE is  India’s leading exchange groups and has played a prominent role in developing the Indian capital market. BSE is a corporatized and demutualised entity, with a broad shareholder-base which includes two leading global exchanges, Deutsche Bourse and Singapore Exchange as strategic partners. BSE provides an efficient and transparent market for trading in equity, debt instruments, equity derivatives, currency derivatives, interest rate derivatives, mutual funds and stock lending and borrowing. BSE also has a dedicated platform for trading in equities of small-and-medium enterprises (SME). BSE provides a host of other services to capital market participants including risk management, clearing, settlement, market data services and education. It has a global reach with customers around the world and a nation-wide presence. BSE systems and processes are designed to safeguard market integrity, drive the growth of the Indian capital market and stimulate innovation and competition across all market segments. Indian Clearing Corporation Limited, the wholly owned subsidiary of BSE, acts as the central counterparty to all trades executed on BSE platform and provides full innovation guaranteeing the settlement of all bonafide trades executed on the BSE Platform. BSE Institute Ltd, a fully owned subsidiary of BSE, runs one of the most respected capital market educational institutes in the country. Central Depository Services Ltd. (CDSL), a subsidiary of is one of the two central depository services in India.

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Yatin Padia / Deepika Shetty

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