Trading in Bombay Stock Exchange’s futures and options (F&O) segment has taken off gradually over the past few months, thanks to the liquidity enhancement incentive programme (LEI­PS) being introduced by the exchange.

Though National Stock Exchange’s F&O segment still enjoys king-size average turnovers of over Rs 1,00,000 crore for the past several months, the way turnover on the BSE F&O segment is growing suggests that the exchange may touch Rs 10,000 crore daily average mark soon. Total turnover in the F&O segment jumped 48 per cent to Rs 69,155.16 crore for January. In December, the turnover doubled to Rs 46,615.10 crore from Rs 23,071 crore in November.

No comparison can be made between BSE and NSE volumes as BSE’s January turnover was just 3 per cent of NSE’s turnover (Rs 22,51,478 crore). However, one must note that BSE’s December turnover was a mere 1 per cent of that on NSE in December, and within a month it has gone up to 3 per cent.

The exchange is providing liquidity enhancement incentives. It is charging lower transaction fees for all trading members for premium-based turnover.

V Gala, chief business officer of BSE said, “More than 400 members have registered so far with over 100 of them participating in derivatives segment on a daily basis touching highest daily turn-over of Rs 4,500 crores in F&O segment. The exchange has been regularly amending the terms and conditions of LEIPS.”