BSE to sign MoUs with commodity exchanges

Mumbai: BSE is entering a memorandum of understanding (MoU) with seven commodity exchanges and their respective clearing corporations before it launches the new nationwide commodity derivatives exchange.

The move is aimed at creating a thriving market on a national platform tapping the experience of various traditional commodities exchanges. All the seven exchanges will be given membership through a subsidiary route on the BSE platform.

For BSE, adding commodities to its basket will make it a one-stop shop for trading. Derivatives trading in securities at BSE is, however, still lagging far behind the National Stock Exchange, which has also promoted (NCDEX) along with other institutions and has a small stake in the Multi-Commodity Exchange (MCX).

BSE, till date, had no firm plans about creating a commodity bourse but now things are changing.