Mumbai, March 13: The Bombay Stock Exchange (BSE) will adopt the Eurex trading platform owned by Deutsche B�rse AG. This new architecture will be first used in its derivatives market platform. Later, it will be extended to the cash market segment.
The upgradation is being seen as an attempt by the country's oldest stock exchange to catch up with its arch rival, the National Stock Exchange, which now has the largest market share. It also comes after the recent entry of MCX-SX, the third stock exchange in the country.
Deutsche Borse holds a 5 per cent stake in the BSE, the maximum that can be held by any single entity in a local stock exchange.
A statement from the BSE said the new partnership would allow it to achieve high global standards for speed, reliability and order-handling capacity. It is also expected to bring to the BSE state-of-the art levels of capacity already in place at the International Securities Exchange (ISE) since summer 2011, which is being rolled out at Eurex Exchange. ISE is the all-electronics options exchange in the US.
The BSE is of the view that by aligning Eurex Exchange and ISE markets on a common trading infrastructure, IT costs for shared customers will be significantly reduced. It is also expected to reduce technology development and installation efforts for Eurex and ISE members who wish to connect to the BSE.