Has BSE finally managed to get its derivatives act right?
Published on Thu, Feb 09, 2012 at 12:50 | Source : Moneycontrol.com
Updated at Thu, Feb 09, 2012 at 17:12
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Has BSE finally managed to get its derivatives act right?
Early days still. But the exchange appears to be making steady progress. The strategy to offer incentives to member brokers to trade in its derivative segment has boosted turnover in the last few months. The key now is for BSE to be able to sustain the momentum.
Early days still. But the exchange appears to be making steady progress. The strategy to offer incentives to member brokers to trade in its derivative segment has boosted turnover in the last few months. The key now is for BSE to be able to sustain the momentum. Liquidity (or the lack of it) can set off a virtuous cycle or a vicious cycle, depending on investor sentiment and market conditions.
BSE would be hoping that improved liquidity brings in more traders, thus boosting the depth of its derivative segment further. But the NSE won't be sitting still either, since it is in a much stronger position to replicate whatever the BSE has to offer. There could be an engrossing tussle in the days to come.
