Now Reading: BSE plans index derivatives linked to MSCI indices
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BSE plans index derivatives linked to MSCI indices
BSE has signed an agreement with MSCI to explore launching futures and options contracts in India linked to several MSCI indices. The exchange aims to give investors a new way to access…
BSE has signed an agreement with MSCI to explore launching futures and options contracts in India linked to several MSCI indices. The exchange aims to give investors a new way to access and hedge exposure to the Indian market, as demand for index derivatives grows alongside rising assets benchmarked to MSCI indexes, which underpin over USD 21 trillion globally.
BSE MD and CEO Sundararaman Ramamurth said the collaboration will further enhance India's market accessibility. The strategic partnership is expected to strengthen BSE's role in developing India's capital markets. BSE shares, which opened over 2% higher on Thursday, pared gains to trade 1.57% lower in intraday trade.
Separately, BSE reported a 62% year-on-year rise in consolidated net profit to Rs 874 crore for the June quarter, with operating revenue surging 63% to Rs 1,566 crore. The stock has fallen 5.84% over the past week and 9.58% over the past month, but has gained 25% year-to-date.
Indian Opinion Analysis
The BSE-MSCI pact could break NSE's near-monopoly in equity derivatives, where it commands over 95% market share. NSE's index derivatives, especially on Nifty 50 and Bank Nifty, are the most traded globally by contract volume. If BSE lists MSCI India index futures, foreign portfolio investors who benchmark to MSCI could trade directly on BSE, potentially shifting liquidity. The key number to watch is the Securities and Exchange Board of India's approval timeline and any product launch date, which BSE has not yet disclosed.
Source: livemint.com
This story was synthesised by AI from the source linked above.
