BSE reports record F&O turnover of Rs 1,600 cr

The leading stock exchange BSE today achieved a record daily turnover of about Rs 1,600 crore in its derivatives segment, helped by a slew of positive measures taken to boost futures and options trading on its platform.

The BSE's future and option (F&O) turnover today hit a new record high of Rs 1,600.1 crore, surpassing the previous record volume of 1,509.8 crore achieved on February 13, 2008.

The exchange said that the derivatives volumes for its bellwether index, Sensex, have also shown steady growth since the launch of an incentive programme and its turnover today touched an all-time high of Rs 1,535.4 crore.

In the Index Futures segment, the Sensex Futures now command a daily market share of 6-8%.

Commenting on the development, the BSE MD and CEO Madhu Kannan said, "BSE's efforts over the last couple of years in the derivatives segment are paying off indicated by the widespread participation."

"More than 350 members have registered for LEIPS (an incentive programme for liquidity enhancement) with over 120 members participating in the trading daily. BSE F&O turnover has steadily increased since its launch and this has helped BSE increase the market share in the derivatives segment," he added.

In September, the exchange had launched Liquidity Enhancement Incentive Programme (LEIPS), a system of incentivizing brokers for bringing in volumes to its platform.

The LEIPS is aimed at stimulating broad-based participation in the derivatives segment and help the BSE become an advanced, more liquid and inclusive marketplace.

The BSE has launched a slew of initiatives in the recent past to revive its derivatives segment and these include a system of giving incentives to brokers for bringing in derivatives business on the exchange.

Besides, it has launched a more dealer-friendly trading software and has moved to a system of delivery-based trading from the cash-settled one previously.

The bourse has also started a training programme for the dealers, which is also helping in brining in higher volumes.