The Hindu : Business : Trading in dollar denominated Sensex futures from February

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Tuesday, Nov 13, 2007
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Trading in dollar denominated Sensex futures from February

Special Correspondent

BSE gets exclusive licence from U.S. Futures Exchange

— PHOTO: PTI

DOLLAR DENOMINATED: Kevin Davis (left), Chairman, USFE, exchanging documents with Rajnikant Patel, Managing Director and CEO, Bombay Stock Exchange, in Mumbai on Monday.

MUMBAI: U.S. Futures Exchange (USFE) announced on Monday that it would exclusively license Bombay Stock Exchange’s (BSE) benchmark Sensex for U.S. dollar-denominated futures trading beginning February 22, 2008.

USFE’s Sensex contract will allow eligible U.S. investors to directly participate in India’s equity markets, without requiring American Depository Receipt (ADR) authorisation. The Sensex is composed of 30 major stocks and regarded as the country’s premier stock market index. Its value has risen more than 600 per cent since its low in May 2003. BSE at present offers rupee-denominated Sensex futures to qualified Indian market participants.

Exposure to emerging markets, particularly India, was now essential for institutional portfolio management and retail investors alike, said Kevin Davis, Chairman, USFE.

“I am confident that the listing of the dollar denominated Sensex contract on USFE will elicit a positive response from the international investing community,” said Rajnikant Patel, Managing Director and CEO of BSE.

USFE’s U.S. dollar-denominated Sensex futures contract will trade 23 hours a day and settle monthly to the corresponding value of BSE’s futures contract.

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