OMX and Bombay Stock Exchange have signed an agreement under which OMX will deliver trading and clearing systems to strengthen BSE’s derivatives and securities trading capabilities.
Under the agreement BSE will implement a system from OMX that will serve as their new trading and clearing platform for derivatives and cash securities.
The trading platform is part of BSE’s ongoing efforts to transform its exchange IT infrastructure to match the growing needs of the marketplace. The first phase of the system roll-out is targeted for launch by mid 2008.
The launch of BSE’s new trading platform is part of its strategy to enhance the volume capacity in the cash market, but also to offer a more robust derivatives platform to the Indian market. The clearing system will allow BSE to clear a wider range of products, as well as offer a new set of clearing services to its members. In addition to the technology implementation, the agreement encompasses a business partnership with the joint objective to drive and grow business at the BSE.
“In our selection of a new trading platform we were looking for a partner that could bring proven technology along with strong system capacity and functionality. OMX fits this profile perfectly, and has demonstrated a strong commitment to delivering a platform that we are confident will provide an enriching experience to the market intermediaries and investors in doing business with BSE,” says Rajnikant Patel, managing director and CEO, BSE.
“Needless to say we are very excited about delivering technology to one of the largest and most active stock exchanges in India. Through transforming its trading and clearing infrastructure, BSE will be able meet the escalating volume capacity needs of the marketplace, putting them in a prime position for further growth,” adds Magnus Bocker, CEO, OMX.
Also involved in the project are subcontractors Headstrong and HCL Technologies, who under the agreement will deliver a range of components and services inside the project.