Bombay Stock Exchange (BSE) has signed a licensing agreement with the International Securities Exchange (ISE) to launch new derivative products in India.
The agreement is part of ongoing market development efforts between BSE and market operator Deutsche Börse Group, which bought a 5% stake in the BSE in 2007. In addition to ISE, the group jointly owns the Eurex derivatives market, with SIX Swiss Exchange.
BSE will now seek approval from Indian regulator the Securities and Exchange Board of India (SEBI), to launch derivative products for Indian investors based on ISE indices, as part of BSE's Futures and Options product-basket.
Speaking on the development, Madhu Kannan, managing director and CEO of the BSE said, “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. To begin with we would seek approval from the regulatory authority SEBI to introduce some indices for the Indian market.”
“Our new agreement with BSE is an exciting first step in providing investors in India with the ability to trade their views on ISE's family of innovative indexes,” said Kris Monaco, head of new product development at ISE. “ISE's indexes provide investors with equity-based exposure to highly topical investment themes, including emerging markets, widely-traded commodities and water. We look forward to working with BSE as they broaden their derivatives business with new products based on ISE's indexes.”