Any1 have idea which brokers allow to trade derivatives in BSE i checked with Zerodha, Edelweiss & 5paisa none of them allow derivative trading in BSE. I think main reason for NSE success is wide availability across all brokers and huge retail participation in derivatives trading.
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David is doing something right that it rattled Goliath to take immediate actions.
’ The recently relaunched S&P BSE Sensex derivatives contracts’ turnover hit a high of Rs 69,422 crore – Rs 69,287 crore in options and Rs 135 crore in futures – on its third weekly expiry last week. This was four times the turnover of the previous expiry.’
BSE’s counterattack should be interesting. But one thing is certain, the new boss at BSE knows the business very well.
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Numbers are going good.
Will be very interesting to watch out in future as more and more brokers allow trading in BSE F&O and also NSE banknifty expiry shifting to Friday (as with BSE) starting July 14.
Disc:- Invested in BSE
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The ball seems to be rolling supposedly with the backing of few FII/DII. Still a long way to go but the vicious cycles of liquidity vs. investors volumes seems to have been broken. Next week expiry is crucial now that NSE has changed date to Friday.
BSE’s derivatives turnover is showing a steady improvement. It would be interesting to track this over the rest of this month. If the momentum is sustaining, we are likely to see the see multiple upgrades to share price in the coming months. Looks like all significant trading platforms are now allowing trading in Bankex options and futures.
See the data here.
AJ
Disclosure: Remain invested and views are biased.
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If we compare with 2012, BSE’s sales has only doubled whereas profits remained the same. Any idea why these numbers don’t grow at least proportional to the growth of broader market? Trading/Investing activity has for sure grown more than double in the last decade. Am I missing something?
they have lost market share
Is BSE charging for these derviative trades?
Looks like the CDSL share sale is completed earlier today. Per Money control 5.4% shares worth Rs 558 crore of CDSL changed hands earlier today. I believe they will use this for a buy back later this year ?
See the news report on money control.
Edit: According to data on NSE, the BSE sold 47,44,000 shares at an average price of ₹ 985.98, thus taking the transaction to ₹467 crore in Central Depository Services (India) Ltd.
AJ
Disclosure: Remain invested in BSE. Added to my existing holdings in CDSL today early morning. Views are biased.
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Now they are charging fully.
Earlier they were not charging of Derivative segment so sales was up but fees were not growing . That ended and they also are putting in place new products like this INDEX options and futures… which got immediate reaction from NSE means they are on right path.
The missing piece to regain volumes on cash and FNO is to move brokers… past being nice has not helped so they now need to play hardball.
Every institutional brokers takes BSE facility for granted. They assume that for BCP DRP BSE is always there so they can shift if there is a break down at NSE . This concentration risk at NSE has no cost.
BSE needs to set a fee to use the exchange if and when NSE stoppage occurs as a BCP . So brokers should be given a limit to their last 3 month trading volumes in case they see a NSE outage . If they wish to trade mode then there is a extremely high fee . This will automatically ensure at each big guy will automatically move 25% volumes…
This is standard operating procedure in banks which provide infrastructure and BSE CAN EASILY IMPLEMENT THIS .
HOPE CEO is listening to us
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The derivative volumes are 2X compared to last week.
Click here for data.
AJ
Disclosure: Remain invested - added during this week. Views are biased.
So basically on Expiry day BSE is doing 3.42L Cr of turnover in derivatives. But How much is NSE doing? That will help to understand the market share and if this will be sustainable by July 14th, when NSE is lauching similar product. There are 3 more Fridays before July 14th, so that might give few weeks for these volumes to ramp up more.
But will these sustain July 14th onwards, will be the big question?
Also, how much is BSE earning on this 3.4L Cr turnover as transaction charge?
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Earnings from derivatives are not important at this juncture. BSE needs to hurt NSE first and takeaway market share for NSE to sit on the table and speak equality and hikes. Atleast, BSE won’t be burning money with LES like yesteryears.
NSE changing expiry is proof that BSE is doing something right. let’s hope the volumes are high enough by July 14th that the damage is irreversible.
Also, I would wish that BSE add more products on another expiry day where it hurts NSE the most. BSE should make the most of this momentum. But, I am happy with what the current management is doing.
Disc: invested. No recommendation. Personal opinion.
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I checked out the Sensex options on Zerodha today and noted that the trading is very active, volumes are robust and the closing open interest is above 2000 contracts!
Looks like market is liking the product since it has a unique underlying and price point as compared to Nifty and Bank Nifty.
See the screen shot of 63000 CE expiring on 23rd June below:
The product is growing at an exponential pace currently - see today’s market summary:
This product is definitely going to make money for BSE in the medium term.
AJ
Disclosure: Remain invested.
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AFAIK, derivatives traders are interested in the availability of more choices, but liquidity is an important factor, one that sustains, not short term. There have been reports that more number of traders lose than make money. So if liquidity dries up after a while, there may not be much activity with Sensex, and the existing and experienced traders may very well participate in the already established Nifty and Bank Nifty. There is also the aspect of all brokers permitting to trade.
No investment in BSE, I participate in Nifty.
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Looks like the trend is continuing - the volumes, turnover and open interest has doubled as compared to yesterday. See the market summary snapshot from BSE website below:
AJ
Disclosure: Remain invested - added yestrday and today. Views are biased.
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this is a very positive trend. Thur & Fri might be huge, possibly.
What i am struggling to understand is how these metrics compare with NSE? What % of total FNO turnover is now with BSE?
Also the Turnover is calculated differently for Options and Future (e.g. is it Options Value (Buy/Sell) = Strike price * Qty, Futures Value (Buy/Sell) = Traded Price * Qty? ) or some thing else? Does anyone have comparable data that we can look at OR point to anything which can help better the understanding?
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This is here to stay and grow. Total contract traded today is nearly 1 Crore and the turn over exceeded 6 lakh Crore. The figures are roughly double as compared to last Friday.
See the market summary as at end of day, today.
All that is missing currently is plunge of FII’s and i believe it is not going to be far away. A robust derivative market can attract more players to start ETF’s directly tracking the Sensex - currently i believe only few ETF’s are based on Sensex(SBI has one!). Mutual funds will have the opportunity to start hedging their Sensex positions via derivatives and BSE will slowly but steadily be in a position to start challenging the blue eyed big brother.
Market seems to have taken note of this - evident from the price movement over yesterday and today.
AJ
Disclosure: Remain invested.
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