The board of Interconnected Stock Exchange of India (ISE) will meet in September to consider signing a memorandum of understanding (MoU) with the Bombay Stock Exchange (BSE). This will enable ISE?s trading members to directly access BSE?s trading platform.
ISE, promoted by regional stock exchanges in 1998, has floated its wholly-owned subsidiary ISE Securities and Services Ltd (ISS) through which member?s trade in securities listed on both BSE and NSE.
ISE has a total of 825 trading members of which 430 members trade through its broking subsidiary ISS in the equity markets and generate an average daily turnover of Rs 350 crore. The MoU will help BSE in its effort to increase the volume in equity and equity derivative instruments, which has consistently lost market share to NSE in past couple of years.
At present, NSE witnesses an average daily turnover of Rs 12,708 crore and Rs 82,215 crore on its cash and derivatives segments respectively. Compared to this, the BSE cash segment generates an average daily turnover of Rs 4,196 crore while its derivative segment is yet to take off.