Mumbai: January 28, 2020: BSE, India’s leading exchange with a speed of 6 microseconds, registered trading volume of 77,100 barrels and open interest of 10,400 barrels, on the first day of Brent Crude Oil futures trading.
The exchange began trading in futures contracts of Brent Crude Oil from 27th January 2020. Shri S K Mohanty, Whole Time Member, SEBI, officially launched the oil contracts on BSE. The exchange will use ICE Brent Index as the final settlement price for its rupee-denominated Brent futures contract.
Commenting on the Brent futures contract, Sameer Patil, Chief Business Officer, BSE, said, “BSE is dedicated to deepen the Indian commodity markets by providing traders, investors and all market participants convenient and cost effective onshore hedging products. We believe that this contract will be widely accepted by all stakeholders and emerge as a preferred risk mitigating tool of all stakeholders. Our partnership with ICE marks a new milestone and will go a long way in serving the needs and interests of the Indian energy commodities space.”
Brent crude is highly co-related with the Indian crude oil basket, with co-relation of 98 percent, as compared to 88 percent for WTI in 2019. The significant contribution (25.23 percent) and high co-relation (98 percent) of Brent crude to the Indian crude oil basket makes Brent a preferred benchmark for users in India.
The BSE Brent crude contracts are designed to not only protect stakeholders from oil market uncertainties but also to bring additional transparency, efficiencies and cost effective hedging tools to market participants in India. Oil producers, refiners, users, investors and traders in India can benefit from access to globally aligned prices and trading practices in Brent crude.
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, 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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