India’s Bombay Stock Exchange (BSE) has signed an agreement with Financial Technologies (India) (FTIL) to provide its members with an equity derivatives trading solution.
BSE members will use ODIN, FTIL’s trading and risk-management solution, to trade on the bourse’s derivatives segment. ODIN is built to offer real-time connectivity to exchanges and back-office systems with inter-segment trading.
The move is part of the BSE’s re-launch of its equity derivatives segment as it seeks to increase daily turnover on the exchange. The exchange began a two-stage liquidity enhancement incentive programme for derivatives based on the SENSEX index and its underlyings on 28 September. Under the programme payments are made to BSE members for derivatives trading volumes and open interest that is maintained. The exchange has earmarked US$21.374 million to be distributed as incentives for the scheme, over seven months.
“The BSE has joined hands with FTIL to enable our members to connect to our exchange platform quickly and trade on the equity derivatives segment at minimal cost,” said Madhu Kannan, CEO, BSE.
The BSE’s main rival, the National Stock Exchange of India , which already uses ODIN, also introduced its own liquidity enhancement scheme for S&P 500 and Dow Jones Industrial Average contracts on 15 September.
The liquidity schemes at both exchanges were set in motion following a circular from national regulator the Securities and Exchange Board of India allowing such schemes.
The BSE also signed a licensing agreement with the International Securities Exchange (ISE) in March to launch new derivative products in India, based on ISE indices.