NSE launches campaign for trading in Dow, S&P

The National Stock Exchange (NSE) is aggressively pitching trading in global indices, the Down Jones Industrial Average and S&P 500. The indices, lead indicators of the stock market movement in the US, were listed on NSE last Monday. According to market players, the battle between NSE and BSE will heat up in the coming days, as both exchanges are launching market making schemes in the derivatives segment.

NSE, which on Monday kicked off a nationwide awareness campaign for trading in Dow and S&P, has also launched a market making scheme for its global indices. BSE’s market making scheme, to revive its equity derivative segment, will start from September 28. The Exchange will spend over Rs 100 crore to revive the segment.

NSE’s joint campaign will cover Ahmedabad, Delhi, Kolkata and Chennai over the week. Monday, the exchange met brokers and trading members in Mumbai. Scot Warren, head of equity index services at the Chicago Mercantile Exchange, and Crieg Lazzara, product head for S&P and Dow, had come from the US for the event.

Stock brokers suggest even if BSE is able to gain some market share in equity derivatives, NSE will be compensated if volumes in S&P and Dow rises. Currently, Dow and S&P have been generating daily volumes of over Rs 100 crore.

“We already have a good response on incentive schemes. We hope volumes will pick up further,” said NSE MD and CEO Ravi Narain.