BSE to conduct mock trade in commodity derivatives

Leading stock exchange BSE will conduct mock trading for commodity derivatives segment from tomorrow as it prepares itself for the launch of trade in such products.

The platform currently offers trading in equities, equity derivatives as well as currency derivatives.

The stock exchange has also informed its trading members that once commodity derivatives are launched, their trading would be conducted on the exchange's BOLT Plus, its new generation trading system.

"The exchange shall start mock trading for commodity derivatives segment in the test environment with effect from Monday, January 29, 2018," BSE said in a circular.

The mock trading would be conducted from 10:30 am to 07:10 pm on Monday and 7:10 pm to 8:00 am on the next day.

Last month, markets regulator Sebi had announced that the country would have a unified exchange regime from October, wherein stock exchanges would be allowed to offer trading in commodities derivatives. Detailed guidelines are awaited.

BSE, which is ready to launch commodities derivatives as and when the regulator comes out with detailed regulations, will enter the segment with non-agri products such as bullion, base metals, crude, and natural gas. It will also offer free- membership for the segment.

The bourse, which got listed last year after a bumper IPO, has expanded in a number of areas including mutual fund distribution, debt placement, currency derivatives and SME segment, besides equity markets.

The Sebi's universal exchanges move will intensify competition among the equity bourses BSE and the NSE, and commodities players like Multi-Commodity Exchange, and National Commodity & Derivatives Exchange.

The larger rival NSE is also reportedly keen to enter the commodities space. Earlier last month, NSE managing director Vikram Limaye had said the exchange was ready to launch commodity derivatives once Sebi issued the guidelines.

"If and when Sebi comes out with regulations NSE would certainly be ready to get into commodities," he had said.