NSE starts trading Dow Jones and S&P 500 in future and options

Business

oi-Shoaib MD

By Shoaib Md

Published: Monday, August 29, 2011, 12:01 [IST]

Indian investors will finally get a chance to hedge their portfolio against the two major US indices, Dow Jones (DJIA) and S&P 500 futures.

The futures of Dow Jones (DJIA) & S&P 500 will be available on the National Stock Exchange (NSE) from Monday August 29, 2011.

Multiples of 250 units will be used for the contract size for S&P 500 futures and options. Meanwhile the Dow Jones futures index will be traded with the contract size in multiple of 25 units.

The contracts will expire on the last Friday of every month.

NSE will launch three serial monthly contracts as well as quarterly expiry contracts ending June, September and December for trading.

Quantity Freeze will be of 15,000 units

All contracts will be rupee-denominated and will be available for trading only during Indian market hours. FIIs and NRIs cannot trade in these instruments.

To create its market and encourage the participation, NSE decided not to levy any transaction charges for trades done till February 29, 2012.

For the time derivative contract on a global index will be launched in India. This is also the first time when futures contract on the S&P 500 listed on an exchange outside US.

Dow Jones is the index representing the 30 most liquid companies of US, meanwhile S&P 500 is an index of the 500 leading companies.

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