Sensex futures to trade on US exchange

The Bombay Stock Exchange (BSE) has announced that it would be launching trading of Sensex based futures on the US Futures Exchange (USFE) in Chicago from April 4, 2008.

The contract will have a notional value of $40,000 and a tick value of $10. The clearing and settlement will take place through The Clearance Corporation, Chicago.

Trading will be done 23 hours a day and arbitrage opportunities would be available. The dollar denominated cash settlement contract is the key highlight. With a view to ensure liquidity, some of the big names have agreed to serve as market makers for the contract.

Currently, the spill over effects from the US markets to the Indian markets used to be transmitted through the Indian ADRs.

Source:Business Week