Aiming to widen its market presence, Metropolitan Stock Exchange of India (MSE) will launch its corporate bond platform in July and is also planning to bring in a slew of products in equities and derivatives segment later in the current financial year. With the launch of new products MSE is targeting to increase its market share to 15-20 per cent in non-equity segments and by nearly 5 per cent in equities. The market is largely dominated by the two other national bourses — the National Stock Exchange (NSE) and BSE.
“The corporate bond segment will be launched in July. MSE is launching electronic book building platform for bond raising on the exchange platform, subsequent listing and trading in these securities,” MSE COO (strategy & development) Abhijit Chakraborty told PTI. “The e-booking software has additional features of live viewing of quotes and facility to modify bids,” he added.
Moreover, Chakraborty said the exchange is planning to launch new products in equity derivative by September. It is also likely to introduce new products in currency derivatives, interest rate futures, equities, during 2017-18. “These products shall increase the overall size of these segments, firmly position MSE as the product innovator and creating value based business propositions for various market participants,” Chakraborty said.
Going by latest data available with market regulator Sebi for 2016-17, while NSE holds almost the entire market share in equity derivatives, it has nearly 84 per cent representation in equity segment followed by BSE with 16 per cent share. In the currency derivative, NSE held 58 per cent share while BSE share stands at 38 per cent, during the last fiscal. MSE has a market share of 3.5 per cent in currency derivatives and is nearly non-existent in the other segments.
However, MSE managing director and CEO Udai Kumar said the exchange has laid out a business revival strategy. “The strategy is based on three pillars. First, re-position the brand and develop trust and credibility through branding exercises, among others, secondly, strengthen business proposal through new product launches, improving existing product offerings and bringing new market segments into the existing product categories,” Kumar said.
“Third, is through providing ease of operations to members,” he added. MSE, earlier known as MCX-SX, was set up by Jignesh Shah-led Financial Technologies (India) Ltd (FTIL) and it commenced operations in Currency Derivatives segment in October 2008. It began operating as a full-fledged bourse with launch of equity trading in February 2013.
While MCX-SX had witnessed a strong performance in initial period of its launch, the turnover saw a sharp plunge amid a payment crisis at National Spot Exchange Limited (NSEL), which was also promoted by Jignesh Shah. MCX-SX was renamed as MSE as part of turnaround strategy to give the exchange a new identity, disassociate from its original promoters and shift to a high growth phase.