Indian equity traders would soon be able to invest in derivative products of benchmark equity indices of Brics stock exchanges. On Wednesday, the BM&FBOVESPA from Brazil, MICEX and RTS from Russia, Hong Kong Exchanges and Clearing Limited(HKEx representing China) and the Johannesburg Stock Exchange (JSE) from South Africa along with National Stock exchange (NSE) and the Bombay stock Exchange (BSE) announced a joint alliance to cross-list each other?s stock index futures contracts.

?Global investors are increasingly seeking exposure to leading developing markets,? says Ronald Arculli, chairman of HKEx and of the WFE(World Federation of Exchanges).

?Through this initiative investors worldwide will gain easier access to benchmark equity index derivatives which will now be offered in local currency on these exchanges. These cross-listings are planned to take place by June 2012.?

Initially the exchanges, which account for over 18% of all exchange-listed derivative contracts traded by volume worldwide, will cross-list benchmark equity index derivatives on the boards of each of other alliance members.

Following that, the alliance will develop innovative products to track the Brics exchanges.

The initiative was announced at the 51st AGM of the World Federation of Exchanges (WFE) in Johannesburg on wednesday.

These seven exchanges represent a combined listed market capitalisation of $9.02 trillion.

The second phase will include the development of products combining exposures to equity indices of all alliance partner exchanges.

?These products would then be cross listed and traded in local currencies,? says Edemir Pinto, CEO of BM&F BOVESPA. ?They will also allow investors to gain exposure to other emerging markets through a locally listed product.”

?The Brics exchanges alliance holds great promise, as it will create avenues for Indian investors to diversify and expand into other emerging markets. It will also provide unique opportunities to investors in other BRICS nations to participate and contribute in India?s growth.? says Madhu Kannan, CEO, BSE.