BSE Daily Trading Volume in Currency Derivatives Goes Past NSE

For the currency derivative traders, there is nothing  better than the BSE with daily trading volumes of hedging instruments on Asia’s first bourse, rising past those on the better-equipped National Stock Exchange (NSE). 

Due to its lower transaction charges, the BSE has overtaken the NSE since May this year. For trades on the BSE, the bourse charges Rs 20 per 1 crore, compared with over Rs 100 per 1 crore on NSE. BSE has offered concessional rates to grab market share once dominated by the NSE, which has now just obtained a new boss Vikram Limaye on Friday after a recent spell of organizational changes at the top. 

Since November 2013, when the BSE launched its currency derivatives, this is the first time that it has overtaken the NSE.

Currency derivatives include options and futures, with four pairs of currencies traded at future prices. The dollar-rupee is the most popularly traded pair, holding about 90% market share.

According to data from both bourses, in the month of May, the average daily turnover was Rs 18,395 crore on the BSE, compared with Rs 17,470 crore on NSE. In June, the average daily turnover was Rs 15,281.07 crore and Rs 12,621.4 crore a day, on the BSE and NSE respectively. 

Traders seek to gain from the price differential between exchange traded futures and over-the-counter, inter-bank futures market, which is still more popular among overseas investors and companies.