In line with preparing itself to launch commodity derivatives transactions, leading stock exchange BSE has decided to hold mock trading sessions for such products from January 29. 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. The platform currently offers trading in equities, equity derivatives as well as currency derivatives. “Mock trading in test environment for the commodity derivatives segment shall be made available daily from Monday, January 29, 2018 onwards,” BSE said in a circular dated January 15. “Details related to connection parameters, timings and file formats shall be communicated via a separate circular,” the exchange added. Informing its trading members that it plans to offer trading in commodity derivatives, subject to regulatory approvals, BSE added that “trading in commodity derivatives shall be conducted on the BOLT Plus trading platform, its new generation trading system”.
It has also asked the members using vendor-based or in-house developed front-end trading applications to initiate necessary development in their respective trading application. On December 28, 2017, the 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 among others. It will also offer free-membership for the segment.