Mumbai, Jul 31 (UNI) The equity derivatives segment at BSE registered a new high of Rs 52,763 crores on July 30, 2020 after gaining wide investor participation since the introduction of S&P BSE Sensex 50 Weekly Futures & Options Contract with Monday Expiry.
Commenting on this milestone, Chief Business Officer, BSE, Sameer Patil said, 'We are happy that our equity derivatives segment is gaining popularity and acceptance among market participants with a turnover of Rs 52,763 crores. I also encourage members to take full benefits of other BSE services such as superior front-end trading software and co-locations services available free of cost. Moreover, BSE systems are more robust and advanced, simple to use yet offering best-in-class risk management framework. These features make the BSE platform an ideal choice for market participants to hedge their equity price risks."
BSE and its subsidiaries provide several solutions to all its members including BOLTPlus On Web (BOW) and BSE Electronic Smart Trader (BEST), Cloud Based Hosted Solution services related to front office order routing software to its members in addition to front end desk top solution like BOLT and BOLT+.
These services are free of cost currently for all members and offers no restrictions in terms of lease line constraints. The BSE software systems are also robust and demonstrated no outages or technical glitches over the last few years.
BOW is a powerful Hosted real time trading solution, available as a Cloud Based hosted solution. This software allows the user to watch real-time market prices and execute orders on multiple exchanges (BSE, NSE, MCX and NCDEX) instantaneously with real time price streaming, risk management from a single window. Similarly, BEST is a robust, state-of-the-art Cloud Based hosted trading solution for BSE members and Customers. The Trading software has been developed to provide an integrated system for Trading and Risk management. BEST supports trading on multiple exchanges (BSE, NSE, MCX ). Both these applications can be connected through Internet from Exe, Browser and Mobile application for trading on Multiple Exchange segments from a single screen, login ID and password.
Added benefits by trading on BSE include trading with one standard deposit at BSE for all trading segments as well as mutual fund distribution. A trader on BSE platform can also take advantage of multi-legged order entry facility in its equity derivatives segment which allow to place a combination of orders across different F&O contracts.
The move would help the trader incorporate more advanced derivatives trading strategies. BSE also offers free co-location for members who can benefit from low latency feeds. Trading members registered can avail this facility to use it to connect and ultimately trade on a single platform, at a scale and speed not previously achieved.
Trading members also benefit from Interoperability of clearing corporations of stock Exchanges, which ensures seamless clearing operations and reduces costs by improving operational efficiencies. An investor could trade on the BSE platform and get the trade cleared at a different venue where your collateral is kept.
This would result in efficient use of capital for trading members who take positions on multiple stock exchanges. Some of these positions may be offsetting in nature and would hence result in a much lower outgo on margins and collateral. In essence with interoperability, investors can park all their collateral with one clearing house, and at the same time benefit from the better prices other trading venues may have to offer.
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