BSE to accept futures & options orders from customers based in US; Exchange takes a global step

BSE announced that the Exchange has received an exemptive relief under Commodity Futures Trading Commission (CFTC) Regulation 30.10, which will allow designated members of BSE to accept futures & options (F&O) from customers located in the US.

As per the regulation, people who are located outside the US as well as those, who are subject to the comparable regulatory frameworks in the country in which they are located, must seek an exemption from the application of certain CFTC regulations, which also includes the requirement of registration.

Since BSE had previously applied for this exemption relief as a representative on behalf of its members and now that it is granted, the members of BSE are permitted to accept F&O orders along with related funds from customers located in the US for futures and options transactions on BSE without registering as a futures commission merchant.

Sameer Patil, Chief Business Officer at BSE Ltd said that this move will benefit BSE members, and going forward, it would provide the customers of the US, increased access to Indian futures & options markets.

BSE is Asia’s oldest exchange and currently, the world’s fastest exchange that plays a prominent role in developing the Indian capital market by providing 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 & borrowing.

On Thursday, the shares of BSE jumped by nearly 5 per cent on NSE.