Mar 14, 2012, 11.36 AM IST | Source: Moneycontrol.com

BRICS Exchanges to cross-list benchmark index derivatives

The five founding members of the BRICS Exchanges Alliance (Brazil, Russia, India, China and South Africa) will begin cross-listing benchmark equity index derivatives on each otherís trading platforms on March 30, 2012 (Friday).

BRICS Exchanges to cross-list benchmark index derivatives

The five founding members of the BRICS Exchanges Alliance (Brazil, Russia, India, China and South Africa) will begin cross-listing benchmark equity index derivatives on each otherís trading platforms on March 30, 2012 (Friday). The move was announced today (Tuesday) at the Futures Industry Associationís 37th International Futures Industry Conference in Boca Raton, Florida.

The five exchanges, BM&FBOVESPA from Brazil, Open Joint Stock Company MICEX-RTS from Russia, BSE Limited from India, Hong Kong Exchanges and Clearing Limited (HKEx) as the initial China representative, and JSE Limited from South Africa, announced the formation of the alliance on October 12th, 2011 at a World Federation of Exchangesí conference in Johannesburg, South Africa. In this initial stage of implementation, the exchanges aim to expand their product offerings beyond their home markets and give investors of each exchange exposure to the dynamic, emerging, and increasingly important BRICS economies.

Get to know the BRICSMART

The listing of benchmark equity index derivatives on the boards of each of the alliance members marks the implementation of the first phase of the alliance.

The derivatives to be cross-listed and offered in the local currency and local trading hours of each of the exchanges will include:
>Brazilís IBOVESPA futures;
>Russiaís MICEX Index futures;
>Indiaís Sensex Index futures;
>Hong Kongís Hang Seng Index futures and Hang Seng China Enterprises Index futures; and
>South Africaís FTSE/JSE Top40 futures.
>Contract specifications

JSE will also list options on the benchmark futures of the other four member exchanges.

Apart from the cross-listing of benchmark equity index derivatives, the member exchanges plan to work together to develop new equity index related products representing the BRICS economies for cross-listing of derivatives and cash market product offerings in the second phase of the alliance. The third phase may include product development and cooperation in additional asset classes and services.

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