Media Release
BSE gets approval from SEBI and RBI to launch Futures on Overnight Call Rate MIBOR
Mumbai, March 27, 2019: BSE, Asia’s oldest exchange and now the world’s fastest exchange with the speed of 6 microseconds, achieves another milestone by receiving approval from SEBI and RBI to introduce Interest Rates Futures on Overnight MIBOR (Mumbai Inter-Bank Offer Rate) consecutively to provide participants an opportunity to manage risk exposures.
MIBOR is the interest rate at which banks borrow from another for short term purposes. Financial Benchmarks India Pvt. Ltd announces the overnight MIBOR on a daily basis and is computed by the Clearing Corporation of India (CCIL).
Speaking on this occasion, Shri Ashishkumar Chauhan, BSE MD & CEO said, “BSE has become a force to recon with in IRF and Currency futures recently with large market share. With the opportunity to introduce interest rates futures on overnight MIBOR, market participants will be able to forecast and manage interest rate risk on BSE.
BSE has always offered cutting edge, cost-efficient, convenient and disciplined risk management framework to market participants. Mibor Futures at BSE will provide a new useful instrument to market participants going forward. We are thankful to SEBI and RBI for the approval to launch the new innovative product”
The MIBOR rate is based on trade-weighted interbank call money transactions on the NDS (Negotiated Dealing System) call platform of CCIL between 9 a.m. and 10 a.m (except on public holidays). Thus, the reference rate is based on the actual traded rates as opposed to polled rates thus acting as an important tool that helps institutions manage interest rate risk.
About BSE
BSE (formerly Bombay Stock Exchange) established in 1875, is Asia’s first & now the world’s fastest Stock Exchange with a speed of 6 microseconds. BSE is India’s leading exchange group and has played a prominent role in developing the Indian capital market. BSE is a corporatized and demutualised entity, with a broad shareholder base that includes the leading global exchange- Deutsche Bourse, as a strategic partner. 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 (SMEs) that has been highly successful. BSE also has a dedicated MF distribution platform BSE StAR MF which is India Largest Mutual Funds Distribution Infrastructure. On October 1, 2018, BSE launched commodity derivatives trading in delivery-based futures contract in gold (1 kg) and silver (30 kg).
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’s 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, a wholly owned subsidiary of BSE, acts as the central counterparty to all trades executed on the BSE trading platform and provides full novation, guaranteeing the settlement of all bonafide trades executed. BSE Institute Ltd, another fully owned subsidiary of BSE runs one of the most respected capital market educational institutes in the country. Central Depository Services Ltd. (CDSL), associate company of BSE, is one of the two Depositories in India.
Media Contact:
Yatin Padia / Rahul Vyas / Mihir Dani
022 2272 8516 / 2272 8472 / 7738012080
Yatin.padia@bseindia.com / Rahul.vyas@indiainx.com / mihir.dani@adfactorspr.com