NSE to launch derivative trade in FTSE 100 index from May 3

Local traders will now be able to bet on UK indice

National Stock Exchange (NSE) today said it has received regulatory approval to start derivatives trade in London exchange's benchmark index FTSE 100 and would launch trading from next month.

With this initiative, for the first time, local traders would be able to bet on UK indice.

"The National Stock Exchange of India has received regulatory approval, to start trading futures and options contracts, based on FTSE 100," NSE said in a statement.

The exchange will be launching the product on May 3, it added.

The new contracts would be tradable by all equity derivatives members of the NSE, through existing infrastructure, the NSE said adding that no additional investment would be required.

The introduction of derivative products on the FTSE 100 index, would enable Indian investors to hedge and gain exposure to the top 100 constituents, listed on the main market of London Stock Exchange.

The move spearheaded by the London Stock Exchange Group (LSEG), FTSE and NSE, signifies FTSE's global reach and NSE’s commitment to further develop the Indian securities market.

 "The FTSE 100 Index, will help Indian investors to diversify their portfolios further and have access to one of the world's widely tracked equity indices, whilst minimising currency risk," NSE Managing Director and CEO Ravi Narain said.

In January, Securities and Exchange Board of India gave green signal to domestic exchanges to offer trading in derivatives contracts of key indices or 24 stock exchange from across the world.

However, UK-based bourse LSE is not in the approved list since derivatives trading is not conducted in that bourse.

Still, derivatives trade in the London exchange's benchmark index FTSE 100 can be launched on Indian bourses as the index is traded on many other global exchanges, which are part of the Sebi-approved list of 24 bourses.