BSE’s market structure consists of four sections where each section represents a separate market with different trading rules. The following types of financial instruments ara traded in different sections:
- securities, which represent ownership right (cash market),
- debt securities (cash market),
- futures and options (derivatives market),
- commodities (cash and derivatives market).
Trading rights are obtained by the brokerage firms separately in each section, therefore the list of brokerage firms who are active in the different section may differ in each section.
Securities, which represent ownership right (equities, investment fund shares) are traded in the equities section. Besides these instruments also the structured products (certificates, ETFs) and special securities (compensation notes) are represented in this section.
Debt Securities Section
Debt securities are represented in the Debt Securities Section, such as government debt securities (treasury bills and government bonds), corporate bonds and mortgage bonds.
Derivatives Section of BSE is consists of futures and options contracts based on single stocks, equity indices, FX and interest rate.
As a result of the BSE and BCE merge dated November 2005, there is commodity trading also on BSE, principally with grain products. Contrary to other sections spot and derivative commodity instruments are traded in one single section.
The BETa Market is BSE’s alternative market launched in November 2011. On this market, the largest and most liquid equities of mainly European companies can be traded under trading the conditions applied on BSE’s Equities Section. The clearing and settlement of the transactions executed on the BETa Market is done by KELER Ltd., and KELER CCP Ltd. guarantees the transactions.