BRICS Exchanges Move Toward Derivatives Cross-Listing

The national exchanges of Brazil, Russia, India, China and South Africa, which comprise the BRICS Exchange Alliance, today announced they intend to start cross-listing benchmark equity index derivatives on one another's trading platforms beginning March 30.

The derivatives, offered in local currency during local trading hours, will include Brazil's IBovespa futures, Russia's Micex index, India's Sensex, Hang Seng and Hang Seng China Enterprises Indices in Hong Kong, and South Africa's FTSE/JSE Top 40.  

The agreement will allow local investors to diversify and gain exposure to other emerging markets through a locally listed product, according to Micex CEO Ruben Aganbegyan. “Cross-listing of benchmark equity index derivatives will facilitate liquidity growth in the BRICS markets and will considerably strengthen the international position of the BRICS alliance in the global economy,” he says.

According to the exchanges, the move is designed to be the first step in greater incremental cooperation. They will also develop new equity index-related products representing the BRICS economies for cross-listing derivatives and cash market product offerings in the second phase of the alliance. The final phase will cover product development and cooperation in additional asset classes and services.