Derivatives based on BSE's Sensex indices are likely to commence trading on Brazil, Russia, China and South African bourses effective from March-April, a senior BSE official said today.
"Sensex indices will be listed on the Brazilian, Chinese, Russian and South African exchanges, while their Brics counterparts --Bovespa from Brazil; Micex from Russia, Hong Kong Exchanges and Clearing Ltd and the Johannesburg Stock Exchange from South Africa - will be listed on BSE," BSE deputy chief executive director Ashishkumar Chauhan said on the sidelines of a conference.
"The BSE will get royalty for each trade on overseas bourses and will pay royalty to respective bourses for trading on local bourses," Chauhan said.
The alliance will enable investors to gain exposure to the Brics bloc of emerging economies through exchange-listed products.
All derivative products would be in the local currency. In the case of India, each of these derivatives would be rupee-denominated, i.e. contracts will be settled in rupee terms and not in the foreign currency, thus mitigating any risk due to fluctuating exchange rates.
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