NSE AND BSE ACCOUNT FOR 96% OF CURRENCY TRADING IN THE ASIA-PACIFIC REGION
16, Apr 2019
Prelims level : Economics Mains level : GS-III Technology, economic development, bio diversity, environment, security and disaster management
Why in News:
- Even though India become one of the largest derivative trading centres globally, it has not stopped the bourses.
- Indian exchanges do not offer trading in exotic derivative instruments like their counterparts in the developed markets in the U.S. and Europe
- Three exchanges — Korea Exchange, NSE and the Moscow Exchange — accounted for 68% of the total single stock futures total volumes traded. Further, the NSE and Korea Exchange together accounted for 90.7% of the volume of index options in the Asia-Pacific region.
- In the currency derivatives segment, the NSE and the BSE together account for 96% of such derivatives volume in the Asia-Pacific region. The two Indian exchanges occupy the top two ranks with nearly 211 crore contracts traded in 2018. Further, the BSE registered the second-highest volume growth in the year at 70% — second only to 84% of Singapore Exchange.
- In commodities as well, an India exchange is featured among the top 10 globally. In 2018, the Multi Commodity Exchange of India (MCX) was ranked eighth globally with a little over 23 crore contracts traded while registering a 16% rise during the year. In India, MCX is the biggest commodity bourse with a market share of more than 90%.
- NSE is an All India level stock exchange. It was incorporated in November 1992. It offers online trading system matching to international standards.
The Main features of National Stock Exchange are as follows
- It has nationwide coverage. The investor can make dealing through NSEI dealer.
- NSE is the first stock exchange in the world which uses communication technology for trading its securities. It is fully computerised, screen based and ringless system.
- It allows the investors to trade their securities from their offices or homes through the network with direct satellite link up. There are transparency dealings. The investor can check the exact price at which their transactions took place. National Stock Exchange is a company promoted BY IDBI, ICCI, LIC and GIC and its subsidiaries, commercial banks. SBI capital market limited. The establishment of the NSE is a major step in upgrading trading facilities for investors and bringing Indian Financial markets in line with international markets. The index of the NSE is called as the Broader 50 share – Nifty.
- Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich with a rich heritage popularly known as BSE. It was established as “The Native Share and Stock Brokers Association “in 1875. It is the first stock exchange in the country to obtain permanent recognition in 1956 from the government role of BSE in the development of the Indian capital market is widely recognised.
The strategic objective of Bombay stock exchange are as follows:
- To promote, develop and maintain a well-regulated market for dealings in securities.
- To safeguard the interest of members and the investing public having dealings on the exchange.
- To promote industrial development in the country through efficient resource mobilisation by way of investment in corporate securities.
- To establish and develop critical and fair practices in securities transactions.
Management of Bombay Stock Exchange
- The exchange is professionally managed under the overall direction of the board of directors., governing body, or executive committee. The board comprises of eminent, professionals, representatives of trading members and the managing director of the exchange. The day to day operations of the exchange are managed by the Managing
- Director and CEO and an expert management Team of professionals.