Posts Tagged ‘MCX-SX’

Now, Trading in Derivatives Contracts in 3 More Currency Pairs :)

Trading in Derivatives Contracts in 3 More Currency Pairs

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Spirits of indian investors and institutions dealing in foreign currencies were boosted by the latest news of regulators allowing Indian bourses to start trading in derivatives contracts in three more currency pairs.

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Rupee-Euro, Rupee-Japanese Yen (JPY) and Rupee-British Pound (GBP).

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Currently, only trading in futures contracts in Rupee-US Dollar is allowed on the bourses, which began on the NSE on August 29, 2008, followed by MCX-SX.

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Permission from the banking regulator Reserve Bank of India (RBI) and the Securities and Exchange Board of India (Sebi) came within a month of the combined turnover of the two forex derivative bourses β€” NSE’s foreign forex trading segment and MCX Stock Exchange (MCX-SX)β€” crossing the combined turnover of the cash market of NSE and BSE.

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Last fortnight, the forex derivatives markets recorded a turnover of nearly Rs 34,500 crore, compared to about Rs 23,200 crore on the two bourses’ cash segments.

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Although BSE offers forex derivatives trading, the segment is yet to take off.

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Following the global trend, where forex trading volumes dwarf volumes in both equities and commodities, the forex derivatives segment in India took just a year and a half since their launch to surpass the turnover in the cash segment of the bourses.

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However, spokespersons from both NSE and MCX-SX said that these bourses will start trading in these three new pairs very soon.

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MCX Stock Exchange Targets Bottom of the Pyramid

MCX Stock Exchange drawn up a strategy to lower costs significantly to take on established players :)

MCX Stock Exchange drawn up a strategy to lower costs significantly to take on established players πŸ™‚

The MCX Stock Exchange (MCX-SX), which is still some distance away from launching trade in equities, has already drawn up a strategy to lower costs significantly to take on established players.

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Exchange, promoted by the Financial Technologies group, is waiting for approval from the market regulator.

But the blueprint is aimed at doing what the National Stock Exchange (NSE) did to the capital markets 15 years ago.

MCX-SX is planning to significantly lower :

1) the Entry Cost,

2) the Cost of Transaction, and

3) the Cost of Technology.

Under the plan, there will be many more segments to trade.

Mutual funds and Initial Public Offers might also be distributed.

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In Other major Agri Updates :

FMC open to debate on extended trading hours:

The Forward Markets Commission (FMC), the commodity markets regulator, says it is willing to discuss the issue of extending trading hours, in line with what the equity markets regulator, the Securities andExchange Board of India (Sebi), did last week.

Sebi has allowed trade timing in equities to be extended, from 9 am to 5 pm; the current hours are 9:55 am to 3:30 pm.

Currently, agri commodities are traded on the exchanges between 10 am and 5 pm.

Market participants have urged the regulator on various occasions to extend trading time till at least 7.30 pm, to capture the sentiment of late evening trades.

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Trading Hours of Bourses Extended by SEBI :)

Trading Hours of Bourses Extended by SEBI

Trading Hours of Bourses Extended by SEBI

Market regulator SEBI on Friday extended the trading hours of bourses by up to two-and-a-half hours from 9 am to 5 pm, a move that may help in bringing back the trade that was seen shifting to Singapore Stock Exchange.

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It has been decided to permit the stock exchanges to set their trading hours (in the cash and derivatives segments) subject to the condition that the trading hours are between 9 am and 5 pm,” SEBI said in a statement.

The new trading hours would now help integrate the Indian bourses with Singapore and other Asian markets in the morning hours, and the European market in the evening hours, said SMC Capitals Equity Head Jagannadham Thunuguntla.

“Some trade that had shifted to SGX Nifty (Indian Nifty traded in Singapore Stock Exchange) can now be brought back to the country,” he said.

The current market hours stand from 9.55 am to 3.30 pm.

In Singapore, trading sessions are held between 9 am to 12.30 pm and 2 pm to 5 pm (local time).

In addition, there is pre-open routine from 8.30 am to 9 am and pre-close routine from 5 pm to 5.06 pm.

Singapore is around two and a half hours ahead of India.

This would provide an opportunity to NSE to try and align their timings to that of a few Asian markets like the SGX since this exchange permits trading in Nifty.

With market regulator SEBI now allowing longer trading hours, it is now up to the bourses to decide on the duration and when to reset their trade timings.

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Thunuguntla said, “All stock exchanges are likely to go for the maximum possible trading hours as they have been demanding it to be extended to 9 am to 9 pm.”

He said there is a serious competition ongoing between Bombay Stock Exchange and National Stock Exchange, and then there is the new competitor MCX-SX.

“I will be surprised if any bourse not utilises the full timing,” he added.

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SEBI Asked BSE to Set its House in Order before Planning a Listing !!

Sebi has asked BSE to set its house in order before planning a listing :)

Sebi has asked BSE to set its house in order before planning a listing πŸ™‚

The Securities and Exchange Board of India (Sebi) asked BSE to set its house in order before planning a listing.

Of late, BSE has planned to list on the exchange for sometime and had approached Sebi for permission to list without an initial public offer.

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Sebi, however, also has to formalize norms for regulating self-listed companies while in order to sell their shares, some BSE members were eager on the listing of the exchange.

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Moreover, the market regulator communicated its position to the stock exchange informally and BSE started steps to develop its technology platform.

In addition, BSE acquired Marketplace Technology (MT) in order to offer back-office solutions for brokers estimated at Rs 43 crore.

On the other hand, BSE, over the years has regularly lost out to NSE on the technology front and new players like Financial Technologies are trying to ride the technology path setting up exchanges such as Multi-Commodity Exchange (MCX) and MCX Stock Exchange.

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Further, BSE has lost the top slot in terms of turnover even though it has more companies listed on it .

It will also be re-launching its derivatives trading and a new marketing campaign which is likely to help it popularize the product.

The move comes at a time when others such as MCX-SX are trying to enter the space.

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