BSE commences commodity derivatives trading in Gold & Silver
Mumbai, October 1, 2018: History was created today as BSE, Asia’s oldest exchange and now world’s fastest exchange with the speed of 6 microseconds commenced commodity derivatives trading in delivery-based futures contract in gold (1 kg) and silver (30 kg) on October 1, 2018. As part of the launch, BSE organized a bell ringing ceremony at the BSE International Convention Hall, which saw several notable dignitaries in attendance. Shri S.K. Mohanty, Whole Time Member, Sebi was the Chief Guest at the event.
The Guests of Honor were Shri Mohit Kamboj, National President, IBJA, Shri Somasundaram, MD & CEO, World Gold Council, Shri Rikab Mehta, President, Bombay Metal Exchange, Shri Sandeep Bajoria, Director, SOPA, Shri Uttam Bagri, Chairman, BSE Brokers Forum, Shri Atul Ganatra, President, Cotton Association of India and Shri Rajesh Baheti, President, ANMI. The exchange will offer derivative contracts only in non-agriculture commodities initially, followed by agricultural commodities subsequently. In order to encourage more participants to join the commodity markets, BSE has decided to waive transaction charges for the first year of commodities market operations.
Commenting on the landmark launch, Shri Ashishkumar Chauhan, MD & CEO, BSE said, “This is a historic moment for BSE, as we have launched the first universal exchange today. We are beginning with gold and silver futures today, and have applied for other contracts too. We also have aspirations to get into agricultural commodities, base metals and pursue other activities in the near future. Over the next 3-4 years, we plan to launch around 60 commodities on the exchange”.
More than 450 members agreed to participate in the 1st phase. More than 150 members completed all formalities and were ready for trading on the very first day, on Oct 1st 2018. We expect more than 450 members to become active in the next 3-5 months and firmly believe BSE with its value proposition will become preferred choice going forward in the derivatives segment.
In this keynote address, Shri S.K. Mohanty, Whole Time Member, SEBI congratulated BSE and its entire team to have arrived on this golden day of commodity derivatives trading in gold and silver.
All the dignitaries, including the noted members from the broking community present at the bell ringing ceremony extended their support and congratulated BSE for its efforts to help establish better linkages between the commodity derivatives market and underlying spot markets.
Over last few years, BSE has been ready with a robust infrastructure for delivery-based commodity trading. BSE has tied up with Indian Bullion and Jewellers Association, Gems and Jewellery Council, Cotton Association of India, Bombay Metal Exchange, Soyabean Processors Association, Federation of Indian Spice Stakeholders, etc. to assess the industry needs and develop suitable products. BSE has also associated with Brinks, Sequel, Sohanlal Commodity Management, etc to develop a suitable delivery infrastructure in various commodities. BSE had initiated a mock trading in January 2018 to help brokers get accustomed to BSE systems.
At 6 pm, BSE had clocked turnover of Rs 36 crores in commodity derivatives segment.
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.
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