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BSE may scrap new trading platform plan

BSE may scrap new trading platform plan
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First Published: Thu, Oct 02 2008. 12 44 AM IST
Updated: Thu, Oct 02 2008. 12 44 AM IST
Mumbai: The Bombay Stock Exchange Ltd, or BSE, may cancel plans to develop a new trading platform with Nasdaq OMX Group Inc., hampering efforts to narrow the gap with larger rival National Stock Exchange Ltd, or NSE.
The agreement, signed in January, may be scrapped because of concerns over technology and timing, exchange chairman Jagdish Capoor said on Wednesday. A final decision will be made after meeting executives from Nasdaq OMX, he said.
The 133-year-old exchange, Asia’s oldest bourse, needs to invest in trading systems to handle surging volumes and keep pace with NSE, which trades almost twice as many shares. BSE had said in January the new trading platform would end glitches after two problems in as many days halted trading. “Just being the oldest exchange is not good enough, we need to pull our socks up and improve ourselves,” Capoor had said.
BSE on Wednesday started offering currency futures, a month after NSE started the derivatives product. BSE plans to list its indexes on the Singapore Exchange to attract overseas investors and will work with Germany’s Deutsche Boerse to develop new products. The overseas exchanges invested in the Indian bourse in April 2007.
“We are contemplating tying up with Deutsche Boerse for boosting our equity derivatives segment, and also looking to list BSE indexes on the Singapore exchange,” BSE chief operating officer M.L. Soneji said.
BSE had said in January that a new trading and clearing platform for the derivative and the cash markets would be operational by the middle of this year. The accord was signed with OMX AB before the Nordic exchange was merged to form Nasdaq OMX, the all-electronic exchange that handles the most shares in the US.
Capoor said the exchange was not comfortable with the technical specifications of the OMX platform and the delivery time frame. OMX would need 18-24 months to roll out the platform, he said.
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First Published: Thu, Oct 02 2008. 12 44 AM IST