Apr 03, 2018 01:53 PM IST | Source: PTI

BSE launches arbitrage rate index

Asia Index, a joint venture between S&P Dow Jones Indices and BSE, has launched arbitrage rate index.

PTI @moneycontrolcom

Asia Index, a joint venture between S&P Dow Jones Indices and BSE, has launched arbitrage rate index.

The S&P BSE Arbitrage Rate Index will equally weigh long positions in the Sensex and equivalent short positions in the futures contracts, Asia Index CEO Alka Banerjee said in a statement.

It will provide market participants with a transparent benchmark to compare the performance of similar arbitrage strategies.

The index will be rebalanced every month, effective after the close of business a day prior to the expiration of the futures contract. The futures contract expires on the last Thursday of each month.