BSE to conduct mock trading for commodity derivatives, eyes SMEs

Bombay Stock Exchange (BSE), which has expanded in areas including small and medium enterprises (SMEs), will conduct mock trading for […]

   

Bombay Stock Exchange (BSE), which has expanded in areas including small and medium enterprises (SMEs), will conduct mock trading for commodity derivatives segment from Monday as it prepares itself for the launch of trade in such products. The platform currently offers trading in equities, equity derivatives as well as currency derivatives. The stock exchange has also informed its trading members that once commodity derivatives are launched, their trading would be conducted on the exchange’s BOLT Plus, its new generation trading system. “The exchange shall start mock trading for commodity derivatives segment in the test environment with effect from Monday, 29 January, 2018,” BSE said in a circular. The mock trading would be conducted from 1030 hours to 1910 hours on Monday and 1910 hours to 0800 hours on the next day. Last month, markets regulator Securities and Exchange Board of India (SEBI) had announced that the country would have a unified exchange regime from October, wherein stock exchanges would be allowed to offer trading in commodities derivatives. Detailed guidelines are awaited. BSE, which is ready to launch commodities derivatives as and when the regulator comes out with detailed regulations, will enter the segment with non-agri products such as bullion, base metals, crude and natural gas. It will also offer free membership for the segment. The bourse, which got listed last year after a bumper IPO, has expanded in a number of areas including mutual fund distribution, debt placement, currency derivatives and SME segment, besides equity markets. The SEBI’s universal exchanges move will intensify competition among the equity bourses BSE and the National Stock Exchange (NSE) and commodity players like Multi-Commodity Exchange and National Commodity & Derivatives Exchange. The larger rival NSE is also reportedly keen to enter the commodities space. Earlier last month, NSE’s managing director Vikram Limaye had said the exchange was ready to launch commodity derivatives once Sebi issued the guidelines. “If and when Sebi comes out with regulations, NSE would certainly be ready to get into commodities,” he had said.(With PTI Inputs)

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