The Bombay Stock Exchange (BSE) has roped in the US-based International Securities Exchange (ISE) to develop and launch derivative products.
ISE operates the world’s largest equity options exchange and offers trading in over 2,000 underlying equity, Exchange Traded Funds (ETF), index, and FX products. ISE trades in issues representing 99 per cent of the options industry’s average daily trading volume.
ISE’s indexes provide investors with equity-based exposure to highly topical investment themes, including emerging markets, widely traded commodities and water.
The agreement is a part of an ongoing market development effort between BSE and Deutsche Boerse Group, which includes Eurex and ISE, the BSE said in a statement on Tuesday. ISE is a wholly owned subsidiary of global derivatives exchange Eurex.
BSE, which has over 25 per cent cash market share in the equity segment, has been making persistent attempts to revive its derivative segment and increase market share. While NSE will have the top US index S&P to trade on its platform, BSE is looking to get indices listed on the Deutsche Boerse and ISE.
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“We are glad to have signed this agreement with the International Securities Exchange which is part of our long-term strategic initiative to offer world-class investment products to investors in India,” said Madhu Kannan, Managing Director and Chief Executive Officer, BSE.
The BSE has a broad shareholder base that includes two leading global exchanges, Deutsche Boerse and Singapore Exchange, as strategic partners.
BSE’s tie-up with ISE has other strategic importance, too. The Deutsche Boerse and the New York Stock Exchange are engaged in merger talks. Once merged, the combined exchange will operate five options exchanges including ISE, Eurex, NYSE Amex, NYSE Arca and NYSE Liffe, as well as more than 40 per cent single-stock options volume.