Nifty Futures Contracts To Start Trading On CME From July 19

Indian bourse the National Stock Exchange said Thursday the futures contracts tied to the S&P CNX Nifty--its index of 50 Indian blue-chip stocks--will start trading on the Chicago Mercantile Exchange from July 19.

In March, the NSE had signed a cross-listing agreement with the world's largest derivatives exchange CME Group Inc. (CME), under which the CME will offer dollar-denominated futures contracts based on NSE's benchmark Nifty 50 index. Also, the NSE will offer rupee-denominated futures based on the Standard & Poor's 500 and Dow Jones Industrial Average.

CME will launch two futures contracts called e-mini and e-micro contracts from July 19, the NSE said in a statement.

The contract size of e-mini contracts will be $10 multiplied by the value of Nifty on that day and the e-micro contracts will be $2 multiplied by the value of the Nifty, the NSE added.

Wednesday, NSE's rival--the Bombay Stock Exchange--signed a pact with Eurex that will see the German derivatives-exchange operator introduce new futures and options contracts tied to the BSE's Sensitive Index, or Sensex.

The pact was the latest in a series of efforts by overseas exchanges to tap into the potential of Indian financial markets despite some regulatory issues that have hampered previous efforts.

-By Ameya Karve, Dow Jones Newswires; +91-22-6145-6121; ameya.karve@dowjones.com

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