Page 194 - DMGT513_DERIVATIVES_AND_RISK_MANAGEMENT

Unit 14: Management of Derivatives Exposure

Notes

Notes Exchanges the Mechanics’ of Derivative Markets
The important currency derivatives exchange is as listed below:
1. Singapore International Monetary Exchange (SIMEX)

2. London Financial and Futures Exchange (LIFFE)
3. Chicago Mercantile Exchange (CME)
4. New York Mercantile Exchange (NYMEX)
5. Chicago Board Option Exchange (CBOE)

6. Hong Kong Futures Exchange
7. Philadelphia Board of Trade
8. Tokyo International Financial Futures Exchange
9. Sydney Futures Exchange (SFE)

Self Assessment

State the following are true or false:

11. Basic risk is the possibility that the value of the derivative will change.
12. Derivatives bought from banks are exposed to bigger credit risks than those bought from
exchanges.

14.5 Futures and Options Trading Systems

The futures & options trading system of NSE, called NEAT-F&O trading system, provides a fully
automated screen-based trading for Nifty futures & options and stock futures & options on a
nationwide basis as well as an online monitoring and surveillance mechanism. It supports an
order driven market and provides complete transparency of trading operations. It is similar to
that of trading of equities in the cash market segment.
The software for the F&O market has been developed to facilitate efficient and transparent
trading in futures and options instruments. Keeping in view the familiarity of trading members
with the current capital market trading system, modifications have been performed in the
existing capital market trading system so as to make it suitable for trading futures and options.
The following are the eligible scripts for trading in futures market in BSE along with their script
code.

Scrip Code Underlying
in Cash Underlying Stock
Segment Stock Details
523204 Aban Offshore Ltd ABO
500002 Abb Ltd ABB
532399 Adlabs Films Ltd ADF
532309 Alstom Projects India Ltd API
500425 Ambuja Cement Limited ACL
532475 Aptech Ltd APT Contd...
522275 Areva T & D India Ltd ATD
500101 Arvind Mills Ltd. ARVML
ASHOK
500477 Ashok Leyland Ltd. LOVELY PROFESSIONAL UNIVERSITY 189
500410 Associated Cement Companies Limited ACC
532215 Axis Bank Ltd. AXSBK
500032 Bajaj Hindusthan Ltd BHL
500490 Bajaj Holdings & Investments Ltd BHI
532134 Bank of Baroda BOB
532149 Bank of India BOI
500103 Bharat Heavy Electricals Limited BHEL
500547 Bharat Petroleum Corporation Limited BPCL
532454 Bharti Tele-Ventures Ltd. BTLE
532792 Cairn India Limited CNL
532483 Canara Bank CNBNK
532885 Central Bank Of India CBI
500040 Century Textiles & Industries Ltd. CEN
500087 Cipla Limited CIPLA
532488 Divis Laboratories Ltd DIV
532868 Dlf DLF
500124 Dr.Reddys Laboratories Limited DRREDDY
532922 Edelweiss Capital Ltd EDL
532696 Educomp Solutions Ltd EDU
526881 Financial Technologies India Ltd FTL
532155 Gail India Ltd GAIL
532754 Gmr Infrastructure GMR
500300 Grasim Industries Limited GRSIM
500620 Great Eastern Shipping Company Ltd GESHIP
532281 Hcl Technologies Limited HCLTECH
500180 Hdfc Bank Ltd. HDBK
500182 Hero Honda Motors Limited HEROHON
500440 Hindalco Industries Limited HNDALCO
500104 Hindustan Petroleum Corporation Limited HPCL
500696 Hindustan Unilever Limited HUL
500188 Hindustan Zinc Ltd HZN
532873 Housing Dev. & Infra. Ltd HDIL
500010 Housing Development Finance Corporation Limited HDFCLTD