FTSE Group is to licence futures and options based on the FTSE 100 Index to the National Stock Exchange of India. The licensing agreement will see the exchange launching the new product on 3 May, following recent regulatory approval granted by the Indian regulator.
For the first time, Indian investors will gain access to the UK equity market through new rupee-denominated derivative contracts based on one of FTSE’s headline indices. The new contracts will be tradable by all equity derivatives members of the NSE through existing infrastructure, with no additional investment required.
The introduction of derivatives products based on the popular FTSE 100 Index will enable Indian investors to hedge and gain exposure to the top 100 constituents listed on the main market of London Stock Exchange (by market capitalisation). The move spearheaded by London Stock Exchange Group (LSEG), FTSE and NSE, signifies FTSE’s global reach and the NSE’s commitment to further develop the Indian securities market, in which it plays an influential role.
Ravi Narain, Managing Director and CEO of NSE, says: “NSE is committed to providing its investors with a range of products and asset classes. The FTSE 100 Index, will help Indian investors to diversify their portfolios further and have access to one of the world’s widely tracked equity indices, whilst minimising currency risk.’’
Rohtas Handa, Managing Director, FTSE India, says: “FTSE is pleased to be part of this innovative cross-market initiative with both the NSE and LSEG. We are committed to serving the global investment community including key markets such as India, where we are committed to providing Indian investors with robust and reliable investment tools for a range of investment opportunities covering Indian and global markets.”
FTSE calculates a range of indices both independently and through a variety of successful partnerships, including trading venues around the world, to provide local market solutions. These indices, including the FTSE 100 Index, are built with robust and transparent rules for eligibility, free float and liquidity screening, ensuring both tradability and investor confidence.
The FTSE 100 index accounts for over 80% of the UK’s equity market capitalisation, forming the basis of a range of investment products including over 30 ETF listings It is widely used by a range of investment professionals for the purposes of investment analysis, performance measurement, asset allocation, portfolio hedging and the creation of a variety of financial products globally.
The National Stock exchange is the third largest exchange in the world, by equity trading volume and the fifth largest derivatives exchange, globally.