BSE completes physical delivery of 16,000 kg in World’s only Almond in shell Futures Contract
Mumbai, July 22, 2020: BSE, Asia’s oldest exchange and the world’s fastest exchange with the speed of 6 microseconds executed maiden delivery of Almond in shell Futures at the exchange designated warehouse in Navi Mumbai. Amid this lock-down, BSE successfully managed to complete delivery to the tune of 16,000 kg seamlessly. BSE's almond in shell futures contracts are unique and innovative, with BSE the only platform in the world to offer physical market participants an avenue to hedge their price risks and take deliveries.
BSE has completed one full delivery cycle in Almond in shell futures contracts after launching the world’s only such Contract on 22 June 2020. The contract trading unit is 1,000 kgs and base value is Rs. per kg. The maximum order size is 20,000 kg, delivery units are 1000 kg deliverable at Navi?Mumbai. The almond in shell contracts will take the reference rate of Navi Mumbai APMC. The quality specifications should meet FSSAI standards with certified crackouts to be of 70% to be based on the net edible yield, with allowable crackout of 68%.
Commenting on the milestone, Shri Sameer Patil, CBO of BSE said, “For the first time, Almonds in shell were priced and delivered on a forward looking, market driven basis based on the BSE futures, offering stakeholders greater transparency and certainty. These contracts brings in more transparency, liquidity, ease of trade for buyers-sellers alike, and reinforces BSE's commitment to widen and deepen the commodity derivatives market in India."
BSE's almond in shell prices are widely used as reference prices for physical market transactions, and helping industry stakeholders with better price marking and quality benchmarking. The exchange is also expanding ties with various physical market participants for strengthening of warehouses and other support infrastructure, which is essential for grading, sorting and quality certification, etc. By reaching out to more participants and spreading awareness of the benefits of these contracts, BSE looks forward to increasing volumes and more deliveries in the future.
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 demutualized 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, commodity 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 Gold, Silver, Copper, Oman Crude Oil Guar Gum, Guar Seeds & Turmeric.
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.
BSE has set up an Investor Protection Fund (IPF) on July 10, 1986 to meet the claims of investors against defaulter Members, in accordance with the Guidelines issued by the Ministry of Finance, Government of India. BSE Investor Protection Fund is responsible for creating Capital markets related awareness among the investor community in India.
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