In a bid to give a bigger platform to the traders, the board of the Bombay Stock Exchange (BSE) is considering a proposal to sign memorandum of understanding (MoU) with Inter-connected Stock Exchange of India (ISE). This move will allow ISE’s members to directly access the BSE?s trading platform.
Currently, ISE members can trade on the BSE and the National Stock Exchange (NSE) through their wholly-owned subsidiary ISE Securities & Services Ltd (ISS).
The proposal, if approved by the BSE board, will help the exchange increase its trading volume. BSE has seen a substantial erosion of its market share to the NSE in the past couple of years. ISE has 825 trading members of which 430 trade through its broking subsidiary ISS and generate an average daily turnover of Rs 350 crore. ?Our management has cleared this proposal and has already submitted it to BSE,? said ISE managing director PJ Mathew. “We are waiting for the final approval from BSE board for signing MoU that will enable our members to access the BSE trading platform directly,” he added. When contacted, the BSE official declined to comment.
According to a senior executive in the know, though top BSE executives are in favour of allowing direct trading access to ISE members that will help the exchange in boosting its volume, certain section of the exchanges trading members are uncomfortable with the proposal.