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Derivatives trading launched on Nifty Junior and CNX 100

June 1st, 2007

NSE Press Release

The National Stock Exchange of India (NSE) today commenced derivatives trading in two new indices viz. Nifty Junior and CNX100. NSE now has an array of five indices and 186 single stock derivatives to offer for trading to the investors.

Nifty Junior derivatives has CNX Nifty Junior index as its underlying. NIFTY Junior is an index comprising of the most liquid securities after the NIFTY 50. The underlying of CNX 100 index derivative is S&P CNX100. This index combines the Nifty 50 and the CNX Nifty Junior stocks to track the behavior of the combined portfolio of the two indices.

In recent times, the market has shown a trend of getting broad based. Currently non-Nifty securities contribute more than 60% of the total market turnover in equities market. Trading in Nifty Junior and CNX100 Futures & Options would enable the investor to take a view on companies which are fast growing, dynamic and highly competitive. It would help them to take an exposure to this dynamic pack of companies. The introduction of these new index derivatives would give more flexibility to the investors and help them in taking wealth maximizing decisions more efficiently.

To encourage active participation during the introduction phase, the Exchange has exempted the transaction charges on turnover above Rs.10 Crores in NIFTY Junior and above Rs.10 Crores in CNX100 per trading member per day in the Futures sub – segment. No transaction charge will be levied on trades done in NIFTY Junior and CNX 100 in the Options sub-segment.

There has been active and wide spread participation in trading above indices today at NSE. More than 200 members participated in trading on the first day of trading today.

Entry Filed under: Equities, Buzzing News, NSE