Media Release
BSE launches India’s first exchange traded interest rate options
Mumbai, August 26, 2019: BSE, Asia’s oldest exchange and now the world’s fastest exchange with the speed of 6 microseconds, has gone live with the trading of interest rate options based on Government of India securities on Aug 26th, 2019. BSE is the first and only exchange to provide trading of Interest rate options. BSE launched interest rate futures in January 2014, which have an average market share of 40% and has now expanded its offerings in interest rate derivatives with the launch of options.
An interest rate option is a financial derivative contract whose value is based on Rupee interest rates. These contracts will be a part of the Interest rate derivatives in the currency derivatives segment. The contracts currently available for trading are based on the underlying government of India securities such as : 768GS2023, 668GS2031, 717GS2028, 726GS2029, 795GS2032, 727GS2026, 757GS2033.
Interest rate options provide for an efficient tool for managing interest rate risk and exposure through hedging. With a wide array of instruments being made available, Investors can hedge their risk across the yield curve.
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