The Bombay Stock Exchange (BSE) has commenced mock-trading in derivatives this week. The exchange received membership from 86 broker-members towards this segments and plans to kick-off actual index-linked trading in this segment by February 2000.
While the BSE will commence with the most popular BSE 30 share sensitive index, the second range of indices to be offered will be the sectoral indices - pharma, infotech, FMCG, followed by the broad-based BSE-100 index, top officials said.
The exchange is finalising its structure for the independent governing council which would operate outside the control of the governing board. The board also would not be entitled to give directions to the governing council. The council will monitor the clearing/settlement functions, monitoring of members positions and margins paid.
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As part of phase I (which commenced this week) 12 PCs have been offered for such trading at the training centre in the exchange while phase II (in January 2000) would involve mock-trading at the broker's own terminal after trading hours (4.30-6.30 pm) on the BOLT platform. Phase III would be the actual trading during normal trading hours.
The exchange has just completed its presentations to the broker-members, leading mutual funds and the top foreign institutional investors.
The contract will have a maturity of three nearest serial months and will expire on the last Thursday of the month. The contract multiple is fixed at 50 and the tick size would be 0.1 times the Sensex or Rs 5 (50 X 0.1). The settlement of Sensex futures would be in cash only.