Stock market: India’s first trade in interoperability framework happens on MSE’s Equity cash segment

Marking the entry of Indian stock exchanges and clearing corporations into the league of global modern exchanges, the long-pending interoperability framework was finally implemented from Monday June 3 with the successful completion of first trades. The first trade went live with MSE’s Equity cash segment to be settled through BSE’s ICCL and other MSE trades getting settled through Metropolitan Clearing Corporation of India Limited (MCCIL)

Elaborating about the first-ever trades under the first interoperability framework, Balu Nair, Interim CEO - Metropolitan Stock Exchange said, “MSE and our clearing corporation MCCIL today successfully implemented under SEBI’s interoperability guidelines of stock exchanges and clearing corporations, thus marking the official beginning of this framework. We are extremely thankful to SEBI and proud to be part of this historic moment for capital markets in India.”

See Zee Business video below:

शुरू हुई इंटरऑपरेबिलिटी की सुविधा, ब्रोकर्स की बचेगी पूंजी।#NSE #BSE @NSEIndia @BSEIndia pic.twitter.com/A8DcxxdzLN

— Zee Business (@ZeeBusiness) June 3, 2019

Ashish Kumar Chauhan, MD &CEO at BSE said, “We thank SEBI for conceptualising   the world class interoperability framework. It will reduce the requirement for funds as well as reduce risk on the overall system when all the stock exchanges and clearing corporations become interoperable making Indian stock market more robust.”

Devika Shah, MD&CEO, ICCL said, “Interoperability will bring down cost of clearing substantially for members with netting benefits, bring efficiency in margins, collateral, clearing and settlement, while bringing down the systemic risk.”

Vijay Bhushan, President at ANMI commented, “Interoperability among exchanges and clearing corporations not only provide more choice to participants but also would bring more efficient utilization of collateral into day-to-day trading. The efficient allocation of funds would lead to cost-effective trades, and make exchange transactions more affordable.”