Nov 7, 2011

BSE Derivatives Segment records largest ever turnover: Sensex futures shine

It looks like the incentive scheme is ultimately working at least as of now. Last week on 3rd Novembar 2011, the derivatives segment of BSE recorded largest ever turnover of 759.24 crore (about 1520 crore both sides).
The sensex futures turnover was Rs.625 crore, highest ever since launch of the vastly tracked Indian index.
Total 128 members put trades in derivatives segment. It is noticeable that since last few days, the turnover of BSE derivatives segment has been rising 50-75 crores rupees everyday.
Whiile on the other side the derivatives market leader NSE is way too up. It records average of atleast 1.20 lakh crore volume daily.

According to our view the MCX and MCX-SX promoters FTIL (financial technologies india limited) and BSE should make a pact (or even merge) to give competition to NSE. With the technological expertise, established no.1 commodity exchange in India (mcx, which is ahead of NSE’s commodity exchange NCDEX in volumes and reach)  and across-the-globe market knowledge of FTIL and strong brand presence in Retail Indian investors, now an SME Exchange and an established equity segmentof BSE, will have a great synergy. Only this could not happen if FTIL is overambitious to own its own equities exchange and BSE remain in rhetoric of its paranoia of old-time-exchange of India.
                    It is notable that the founder of FTIL, Mr.Jognesh Shah, started his career way back in 1980s at BSE as a software engineer and went out to create India’s largest used trading terminal ODIN DIET, biggest commodity exchange MCX and most numbers of exchanges/tie-ups through out the globe out of India.
                    In October this year BSE tied-up with FTIL for ODIN software to relaunch it's derivatives scheme after getting approval from SEBI in June-2011 to launch Liquidity Enhancement Incentive Scheme for which BSE has earmarked 107 crore for 7 months in 2 phases.  FTIL's ODIN software enjoys 80% marketshare in CTCL (computer to computer link) platform solutions for exchanges in India. Most of the rest is accounted for NEAT of NSE and BOLT of BSE.
                    With international financial exchange markets already on the brinks of saturation of not saturated, the Indian local exchange players should cement their position before the financial markets reforms kick in and International players take them by storm.

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