Derivatives trading surged on the Bombay Stock Exchange (BSE) during the week ending February 10, increasing almost five-fold during the period.

Trading volumes spiked from 37.8 million rupees on Monday, February 6, to 124.9 million rupees on Wednesday, February 8, according to Daily News & Analysis. Activity increased to almost 176 million rupees during the final session of the week, The Economic Times reports.

The BSE announced that it was initiating the first phase of its Liquidity Enhancement Incentive Programmes (LEIPS) on September 28, 2011, and the second phase of the plan on October 26, 2011, Daily News & Analysis reports.

The LEIPS program entailed the exchange providing derivatives traders with capital incentives for the use of derivatives, according to The Economic Times. Options trading and the use of trading algorithms both contributed to strong trading activity on Thursday, Rajesh Baheti, managing director of Crosseas Capital, told the media outlet.

"Further, volumes could have been triggered by February mid-month BSE derivatives that expired on Thursday. From tomorrow, there will be a bigger jump in turnover as trading moves to the end-month expiry contracts," he told the media outlet.