Deutsche Bourse: A Case Study On The Future Market

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CHAPTER 1 INTRODUCTION Hedging is one of the main functions provided by future market and also the reason for existence of future markets. The main purpose and benefit of hedging on the futures markets is to minimize possible revenue losses associated with the adverse cash price changes. The risk of price variability of an asset can be managed by mechanism of hedging. The hedging activity can be considered as exchanging price risk for basis risk. The basis defined as cash price minus nearly future price. The basis between a futures contract and its underlying commodity is an important measure of the cost of using the future contract to hedge 1.1 INDUSTRY PROFILE Financial services industry is a term used to refer to the industry which provides…show more content…
Over the past 140 years, BSE has facilitated the growth of the Indian corporate sector by providing it an efficient capital-raising platform. Popularly known as BSE, the bourse was established as "The Native Share & Stock Brokers' Association" in 1875. BSE is a corporatized and demutualised entity, with a broad shareholder-base which includes two leading global exchanges, Deutsche Bourse and Singapore Exchange as strategic partners. BSE provides an efficient and transparent market for trading in equity, debt instruments, derivatives, mutual funds. It also has a platform for trading in equities of small-and medium enterprises (SME). BSE also provides a host of other services to capital market participants including risk management, clearing, settlement, market data services and education. It has a global reach with customers around the world and a nation-wide presence. BSE systems and processes are designed to safeguard market integrity, drive the growth of the Indian capital market and stimulate innovation and competition across all market segments. BSE is the first exchange in India and second in the world to obtain an ISO 9001:2000 certifications. It is also the first Exchange in the country and second in the world to receive Information Security Management System Standard BS 7799-2-2002 certification for its On-Line trading System (BOLT). It operates one of the most respected capital market educational institutes in the country (the BSE Institute Ltd.). BSE also provides depository services through its Central Depository Services Ltd. (CDSL) BSE's popular equity index - the S&P BSE SENSEX - is India's most widely tracked stock market benchmark

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