BSE to roll out single stock
futures from July 1
BSE
will launch single stock futures from July 1, the bourse said on Wednesday.
This will be a fortnightly product and will be free of cost initially. Rival
NSE currently offers over 180 stocks in index derivatives, but BSE may offer a
much lower number to begin with, said market watchers.
BSE
relaunched its weekly Sensex options product last year, with a Friday expiry.
Bankex expiry was shifted to another day as well. BSE has wrested a
double-digit market share in notional turnover in index derivatives, which is
expected to climb and stabilise at 18-20 per cent in the coming months,
according to analysts.
To
deepen market
Shoring
up volumes in stock derivatives, may be a lot harder, given the problem of
higher volatility and lower depth, said experts.
The
exchange said on Wednesday it has readied 100 colocation racks with an aim of
deepening the market, and improving participation from algo and high frequency
traders, especially in index options.
The
bourse said it will discuss the issue of higher regulatory fees on options
contracts with the regulator. The exchange was recently asked to cough up more
fees on options contracts by the regulator for several years along with
interest. It has been paying the regulatory fee on the annual turnover--taking
into account the premium value for options contracts. As per norms, the fees
need to be paid on the notional value of options contracts. In addition, the
fees paid to the regulator for FY07 was for a quarter instead of a full year.
The
total differential on the SEBI regulatory fees from FY07 to FY23, would be
₹68.64 crore plus GST which includes interest of ₹30.34 crore.
The
exchange intends to pass on most of the additional cost on fees to investors by
increasing the transaction charges. Jefferies recently downgraded BSE to hold
from buy and cut its price target to ₹2,900 from ₹3,000 earlier.
The
exchange said it will reallocate a portion of its settlement guarantee fund for
currency derivatives after the necessary regulatory approval.
www.thehindubusinessline.com
dt. 09-05-2024