BSE gets nod to launch commodity derivatives

Leading stock exchange BSE said it has received markets regulator Sebi's approval to launch commodity derivatives segment from October 1 and to start with, it will focus on non-agriculture commodities like metals.

At present, the platform offers trading in equities, equity derivatives as well as currency derivatives. The Securities and Exchange Board of India (Sebi) last December, announced that from October 2018, the country would have a unified exchange regime wherein stock exchanges would be allowed to offer trading in commodity derivatives. In a statement, BSE said it has received “another feather in its hat by getting Sebi's approval to launch commodity derivatives segment from October 1, 2018.”

“BSE will begin trading in commodity derivatives with non-agriculture commodities like metals initially, followed by agri commodities subsequently,” it added. According to the exchange, its commodity derivatives platform will help in efficient price discovery, reduction in timelines, cost effective, user-friendly, robust risk management system and wider market penetration. Besides, the exchange will conduct mock trading in live environment for the segment. Larger rival NSE had conducted a similar session on September 1.