BSE Brings Back the Freebie in Onshore Rupee Derivatives

India's oldest exchange, the Bombay Stock Exchange (BSE) has succumbed to the world of FX derivatives. The Mumbai-based exchange has launched commission free FX futures on its new Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term as it attempts to diversify its holdings in declining equity margins.

The exchange has gone live with BOLT PLUS, a new low latency terminal supplied by Deutsch Boerse’s New Trading Architecture. The new portal will also enable the exchange to deal with a large number of orders, with an order handling capacity of 500,000 order messages per second.

For the new asset class, the BSE uses the old age technique of 'special promotions' as it competes with rivals, National Stock Exchange (NSE) and MCX, to lure currency traders to its den. The exchange issued a circular which informed traders of its offering of zero commissions on transactions.

The BSE becomes the fourth Indian exchange to launch onshore FX futures in the rupee. The move comes during a hostile period for the BRICS nation’s currency which crossed record lows. The offshore rupee market is plagued by speculators bullying the NDF rupee price, an initiative that New Delhi disregards.

Dr Syed Ahsan, Dean of Dhofar University (a writer and analyst on Indian financial markets) spoke about the rupee in a comment to Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Magnates, he said: "Expect more doom and gloom as the election approaches, we foresee further weakening of 8 to 10% in the next quarter."

Rupee futures were first launched in India in 2008 on the back of growing concerns by corporates to manage their exposure. The NSE and MCX both launched a commission- free offering, however they both introduced commissions in 2011 after the Competition Commission of India got involved.

Mohd Naveed, a Delhi-based proprietary trader commented to Forex Magnates: “With the recent Commodity Transaction Tax killing the commodity space, investors are branching out to alternative instruments including FX."

BSE offers FX through its platform and reported reasonable volume of $52 million on its first day of trading.