BSE scheme to push Sensex futures trade

The Bombay Stock Exchange (BSE) is setting in motion schemes to have more trader usage of the Sensex, its benchmark index and also the most referred one for Indian markets.

For encouraging futures trading in the Sensex, as well as in individual stocks, the BSE is making such trades available on BOLT terminals from Monday. Cash market transactions on BSE are done through BOLT, but for trading in futures, brokers need to currently have the derivative trading and settlement system (DTSS).

Since every broker is using BOLTs, the ease of trading of futures on the same system is expected to generate liquidity and volumes in the derivative segment of BSE. The exchange has nearly 800 members, of which 250 have been registered for derivatives. BSE is also making available futures trading on ODIN-operating software developed by Financial Technologies, and such other software developed by other developers like Religare, 3i InfoTech and so on.

Sources said after successful mock trading on Saturday, Sensex futures will start trading on BOLT and other systems from Monday. The exchange is also preparing a drive to popularise futures trading. Most trading in the derivative segment is now happening on the National Stock Exchange (NSE), now around Rs 1 lakh crore a day.

BSE is also preparing to bring back the erstwhile badla, which was banned eight years earlier, in a revised form after plugging flows. One proposal under consideration is to introduce weekly badla. BSE’s overseas partners’ help is also being taken for developing the derivative segment.

BSE is also in the process of launching a web site on the Sensex which will provide A to Z information on companies that are part of the Sensex on a real time basis.