BRICS cross-lists equity index derivatives

Priya Sheth Mumbai | Updated on November 14, 2017

More investing options: (from left) Mr Jasol Luis Pellegrino, Consul-General of Federative Republic of Brazil; Mr Quinbao Niu, Consul-General of People’s Republic of China; Mr Pule Malefane, Consul-General of Republic of South Africa; and Mr Zhukov Prokhor, Consul of Russian Federation; pose with the bull’s statue at the Bombay Stock Exchange during the launch of BRICSMART in Mumbai on Friday. — Shashi Ashiwal

BSE not to charge for trades in first six months

Indian investors can now trade in futures on the BRICS indices in local currency.

The joint initiative of the exchanges of BRICS nations known as ‘BRICSMART,’ was launched on Friday. It gives investors easier access to the benchmark equity index derivatives.

The initiative brings together the Brazilian BM&FBOVESPA, the Russian MICX-RTS, the Hong Kong Exchanges and Clearing Ltd (HKEx), the Johannesburg Stock Exchange (JSE) from South Africa and the BSE.

The BRICSMART products are cross-listed on the exchanges involved.

The index futures contract shall be marked-to-market on a daily basis and settled in cash on ‘T+1 day.’

“The overlapping time zones will be an added advantage for investors. For the first six months, we will be concentrating on volumes and there will be no charge on trade. After that the charge will be shared on a 50-50 basis,” said Mr Ashishkumar Chauhan, Deputy CEO, BSE.

Published on March 30, 2012

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