Delhi Stock Exchange looks forward to win back firms with aid from Financial Technologies
When it comes to Stock Exchanges, the only one that comes to everyone’s mind is the Bombay Stock Exchange, or the BSE, as it’s popularly known. It then doesn’t come as a surprise that the Delhi Stock Exchange (DSE) and the Bangalore Stock Exchange hasn’t been in the people’s psyche for reasons which are very obvious. The Bangalore Stock Exchange, which has 340 members, hasn’t been in action in the past half-decade. Both the institutes that had enjoyed the reputation of being strong regional exchanges are now working on ways to win back companies and traders.
Until two decades ago, India had 21 regional stock exchanges.But things started changing once the National Stock Exchange Ltd (NSE) was set up in 1994. The NSE, with its satellite-linked terminals, made transactions a breeze, and eventually, other regional exchanges fell by the wayside. NSE was the first exchange in India that offered a modern, fully-automated screen-based electronic trading system. Investors lapped it up because NSE offered easy trading facility across India.
Several companies that were earlier listed on the regional exchanges, can’t access the capital market as the rules of entry are strict. DSE (Delhi Stock Exchange)is planning to look after this issue. It will allow trading of the companies listed in the now obsolete regional exchanges in the form of “permitted securities”.
In a bid to revive, DSE has partnered with the Financial Technologies group, one of its investors. Financial Technologies is building a nationwide trading platform that also features disaster recovery services. A member from FT informed that the company will provide technology to DSE that will ease the clearing and settlement platform. Financial Technologies already provides these services to global clients.
MCX Stock Exchange Ltd, or MCX SX, a subsidiary of Financial Technologies, currently works in the currency derivatives segment. It has applied to capital markets regulators for permission to launch equities trading.