Thursday, November 04, 2010

SENSEX Goes Global on EUREX

The international derivatives exchange EUREX, jointly operated by Deutsche Bourse AG and SIX Swiss Exchange, organizes markets globally. Since 2007, Deutsche Bourse holds a five percent stake in the Bombay Stock Exchange. EUREX is home to the Euro zone interest rate and equity index benchmark derivatives.

EUREX’s portfolio of markets includes International Securities Exchange, the world’s largest equity options exchange. The ECNs EUREX Repo and EUREX Bonds round out EUREX’s offering for repo and bond trading. In addition, EUREX provides an automated and integrated clearing house, EUREX Clearing AG. EUREX’s global liquidity network comprises around 410 direct exchange members in 25 countries worldwide. For more information about EUREX, visit

SENSEX, first compiled in 1986, is the leading equity index in India. SENSEX is a “free-float” market capitalization weighted index of thirty stocks covering the key industry sectors in India. There are numerous ETFs and mutual funds tracking or benchmarking the SENSEX that are traded in India and overseas. In addition, the BSE trades futures and options on the SENSEX. For more information on SENSEX derivatives on BSE, Click Here or contact your respective account managers.

Product Facts
EUREX will be the first exchange to launch Indian equity index futures and options outside India. Offering futures and options on one single platform allows market participants to use combined trading strategies (for example volatility trades) and permits cross margining between the two contracts. With the launch of SENSEX derivatives EUREX, we are creating new opportunities for customers seeking an appropriate hedging tool for Indian exposure or arbitrage trading EUREX SENSEX Futures and Options will be denominated in U.S. dollars and settled in cash. Covering additional hours of the global trading day, the listing of SENSEX derivatives at an European exchange will provide more flexibility to our customer base in Asia and throughout the global EUREX network. Market participants will not only benefit from extended trading hours but also from even more liquid markets during overlapping trading hours.

EUREX Exchange will offer two Market-Making-Schemes for SENSEX Futures – one to support liquidity during the overlap of Indian and European trading hours (three hours in winter, four during European summer) and one for European market hours. The programs will be running until the end of December 2011. For trading in SENSEX Options a scheme will be offered for the overlapping hours.

Off-exchange Trading
The new SENSEX contracts are also admitted for EUREX block trading at a minimum trading size of 100 contracts as well as for the entry of EUREX Flexible Contracts and EUREX Vola Trades. From the launch in October 2010 until end of March 2011, EUREX will not charge any fees for trading or clearing SENSEX contracts.

For More Details Log on to BSE India