BRICS bourses to cross-list derivative indices

Five of the world’s leading emerging market indices, will start to cross list their derivative indices from March 30, in a bid to expand their product offerings beyond their home markets.

The cross-listing of benchmark equity index derivatives is likely to facilitate liquidity growth in the BRICS markets and will considerably strengthen their international position.

The derivatives to be cross-listed includes Brazil’s IBOVESPA futures; Russia’s MICEX Index futures; India’s Sensex Index futures; Hong Kong’s Hang Seng Index futures and Hang Seng China Enterprises Index futures; and South Africa’s FTSE/JSE Top40 futures, a joint statement said.

Further, JSE will also list options on the benchmark futures of the other four member exchanges.

The founding members of the BRICS Exchanges Alliance include BM&FBOVESPA from Brazil, Open Joint Stock Company MICEX-RTS from Russia, BSE Limited from India, Hong Kong Exchanges and Clearing Limited (HKEx) as the initial China representative, and JSE Limited from South Africa.

The alliance was formed on October 12, 2011, at a World Federation of Exchanges’ conference in Johannesburg, South Africa.

The listing of benchmark equity index derivatives marks the implementation of the first phase of the alliance.