Goldman Neal Bhai Reports – Indian stock exchanges assured international bourses and index providers of orderly transition. Steps would be taken to ensure that ending licensing pacts do not disrupt the markets, BSE Ltd., National Stock Exchange of India Ltd. and Metropolitan Stock Exchange of India Ltd. said in a joint statement.
The exchanges added that they will continue to work with the regulators to further enhance the attractiveness and competitiveness of the Indian markets for accessing and trading India related products.
The announcement comes over a week after these bourses decided to curb all licensing agreements and stop offering live prices to international exchanges.
The coordinated move from the exchanges assumed significance at a time when Singapore Stock Exchange has launched trading in single-stock futures in 50 of India’s top companies that are part of the Nifty index. The development triggered concerns about liquidity moving out of the country.
The exchanges said that there have been discussions, meetings with several bourses, data vendors, index providers, market participants and investors to provide clarifications related to the announcement of ending licensing agreements.
Last week, global index provider MSCI Inc. had termed the move by Indian stock exchanges to restrict derivatives trading and data feeds overseas as anti-competitive.
On Feb. 5, SGX introduced single-stock futures of Nifty 50 companies despite reservations expressed by the NSE. – Gold Silver Reports – INDIA
