Volatile market conditions won’t affect investors faith on global indices: NSE

Chennai:

National Stock Exchange on Friday said that uneven market conditions will not affect the interest of investors on its futures linked to global indices Standard & Poor’s 500 and Dow Jones Industrial Average (DJIA) that were listed on the exchange recently.

Addressing a press conference, National Stock Exchange of India Limited senior vice-president R Sundararaman said that the volatile markets will generate more interest among investors as the need for derivatives increases during the volatile times.

He said on Thursday cash incentives were started on National Stock exchange for member brokers and clients for trading in S&P 500 and clients for trading in S&P 500 and DJIA futures contracts and S&P options.

“On the first day of these incentives, volumes were much higher than the dsaily average volumes in these contracts since the launch of these indices on August 29,” he said.

The total volumes in these indices were 187 crore on Thursday, where as the average daily volume so far has been 120 crore, he said.

“The number of daily average contracts traded also went up from 4,000 to 6,600 on Thursday. Of the 187 crore, the Dow Jones futures contracts clocked in more than 100 crore on September 15,” he said adding that the incentives are at the trade level, client level and on the baisis of open interest.

Also present at the event were Phil Milar, director, Alliance and Venture Management, Chicago Mercantile Exchange Group, Craig Lazzara, senior director US Equities and Jamie Farmer, executive director of Global Business Development and Communications DJIA. The event is part of an initiative by NSE to launch awareness about the global indices. Sundararaman said the exchange is doing a joint campaign with the officials from CME, Standard and Poor’s and Dow Jones indexes to create awareness about the product.

“This is the first time in the world that futures contracts on the S&P 500 index have been introduced and listed on an exchange outside United States and creating awareness about the product is critical to generate interest among Indian investors in the indices,” he said.