BSE, India’s leading and most diverse exchange, announced that it has completed one month since launch of SUFI Steel futures contracts on the exchange platform, and has facilitated the delivery to the tune of 90 MT in the first full expiry cycle at the exchange designated delivery centre in Raipur.
The contract was launched by Shri Sajjan Jindal, Chairman and Managing Director of JSW Group on 22nd July, 2021, who had highlighted the lack of a transparent benchmark for steel industry. BSE is confident that the successful completion of the delivery process will encourage more participants in the value chain to use the BSE SUFI Steel billets futures contracts going forward.
Shri Sameer Patil, Chief Business Officer of BSE said “The delivery of 90 MT at the accredited warehouse has demonstrated the effectiveness of the BSE SUFI Steel Billets contracts as a robust risk hedging instrument to stakeholders associated with steel business. The BSE platforms offers participants in the steel ecosystem a structured price discovery platform as well as a national level benchmark price, enabling them to mitigate price risk.”
The BSE had commenced trading in delivery-based futures contract in ‘BSE SUFI Steel’ with the goal of creating an exchange-traded benchmark for the steel market. The contract is ex-Raipur, which is the basis centre. The trading and delivery unit are 10 MT, with a strike price interval of 100. The tick size is Rs. 10.00, which gives traders enough movement for bid and offer prices.
BSE (formerly Bombay Stock Exchange) established in 1875, is Asia’s first & now the world’s fastest Stock Exchange with a speed of 6 microseconds. BSE is India’s leading exchange group and has played a prominent role in developing the Indian capital market. BSE is a corporatized and demutualized entity, with a broad shareholder base that includes the leading global exchange- Deutsche Bourse, as a strategic partner. BSE provides an efficient and transparent market for trading in equity, debt instruments, equity derivatives, currency derivatives, commodity derivatives, interest rate derivatives, mutual funds and stock lending and borrowing.