BSE launches SENSEXmini derivatives contracts
For the first time in India, Bombay Stock Exchange offers mini Futures and Options contracts on the leading Indian equity Index ‘SENSEX ‘ for retail investors to participate in the ever growing Derivatives market. The SENSEX is the barometer of the Indian Capital Markets and widely tracked in the global financial markets.
- Since mini futures and options have market lot of FIVE, lower capital outlay and lower trading costs.
- Smaller size allows for more precise hedging and flexible trading.
- Possible arbitrage between existing SENSEX Futures (bigger market lot) & SENSEX mini Futures (market lot 5).
- SENSEX constitutes 30 leading companies of diverse industries covering 12 broad sectors of the Indian economy. Provides macro view of economy to retail as well as institutional investors.
- The SENSEX has risen in value by more than 585% since its low in May 2003.
- The value of SENSEX has risen by over 38% since May 31, 2007 and has crossed 20,000 on numerous occasions.
- The constituents of SENSEX account for around 42% of the total BSE market capitalisation as on December 13, 2007.
| Parameter | Index Futures |
Index Options |
| Security Name | Sensex Mini Futures | Sensex Mini Options |
| Security Symbol | MSX | MSX |
| Underlying | SENSEX | SENSEX |
| Market Lot | 5 | 5 |
| Exercise Style | - | European |
| Contract Period | 1, 2 & 3 months | 1, 2 & 3 months & 1, 2 weeks |
| Tick size | 0.05 i.e. 5 paisa | 0.05 i.e. 5 paisa |
| Price Quotation | In index points (SENSEX) | In index points (SENSEX) |
| No. of Strike Prices | - | Shall have a minimum of 3 strikes (1 in the money, 1 near the money, 1 out of the money). |
| Strike Price Interval | - | Same as for existing contracts |
| Trading Hours | 9:55 a.m. to 3:30 p.m. | 9:55 a.m. to 3:30 p.m. |
| Last Trading/Expiration Day | Last Thursday of the contract month. If it is a holiday, then the immediately preceding business day.Note: Business day is a day during which the underlying equity market is open for trading. |
Same as futures |
| Final Settlement | Cash Settlement. On the last trading day, the final settlement price of the expiring futures contract would be based on the closing value of the underlying SENSEX.The following algorithm is currently being used for calculating closing value of the individual scrips including the scrips constituting BSE SENSEX in the Equity Segment: • Weighted average price of all the trades in the last thirty minutes of the continuous trading session. • If there are no trades during the last thirty minutes, then the last traded price in the continuous trading session would be taken as the official closing price. |
Same as futures |
| Exercise Notice Time | - | It would be a specified time (Exercise Session) on the last trading day of the contract. All in-the money options by certain specified ticks would be deemed to be exercised on the day of expiry. |
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