MD and CEO of BSE, Ashishkumar Chauhan said that BSE would initially focus on non-agri products - gold, oil and natural gas futures and options.
MUMBAI: The Bombay Stock Exchange (BSE), Asia's oldest bourse, is ready to launch later this year a commodities derivatives segment that will include products tied to underlying physical assets such as gold, crude oil, and natural gas.
"We had evinced interest in starting a commodity exchange when the Forward Markets Commission (FMC) used to regulate commodity derivatives, and then in September 2015 after FMC got merged with Sebi," MD and CEO of BSE, Ashishkumar Chauhan, told ET. "Then, our India International Exchange began in January last year where after equity and equity derivatives, etc, we launched commodity derivatives in the past six months," Chauhan said, referring to plans offering commodity derivatives from October.
"We hired people to prepare for our foray into the commodity exchange a few years ago and they are on the ball in terms of contract design, innovation, etc," he said. Asked which contracts the exchange would launch in October when Sebi allows a unified exchange regime, Chauhan said that BSE would initially focus on non-agri products - gold, oil and natural gas futures and options.
Chauhan added that BSE could leverage its technology to succeed in commodity F&O. The trading technology acquired from Deutsche Borse group enabled it to emerge as the largest exchange offering currency and interest rate futures derivatives since late 2013, Chauhan said. NSE is the other stock exchange that offers a vibrant currency derivatives segment, and is the market leader in equity and equity F&O.
