Update on the macro environment of the stock exchanges (July 2018): We have been in continuous interactions with the top officials of both, NSE and BSE. The stock exchanges are evolving very fast and it's good for everyone. We were happy to know that NSE is encouraging algo trading and have been working on upgrading their own technology significantly. Everyone will experience the benefits of their efforts in the future. Generally, monopolies don't evolve until there is a threat to their survival. This is certainly not the case with NSE. I feel confident that the top brass of the National Stock Exchange is steering the ship in a way that it can cope with the challenges of the next decade. One example is their recent launch of the cross-currency derivatives contracts. (We felt they announced this is a hurry before brokers like us could implement the necessary tweaks in our platform) but they have a good vision. In the back-end, settlement mechanism being worked out for these contracts is unique and based in rupees based on RBI reference rate. We will be launching this soon.
Yesterday, I met with the Chairman, Managing Director and Head of Business Operations of BSE. While most people in India had written off BSE as redundant, few are aware that they have reinvented themselves in many ways and have done their best to shake out the legacy issues that held them back in the past. Their initiatives are futuristic and I'm told that the management is independent which has allowed them to propel their plans into reality. Apart from the derivatives segment, they are leaders in several other business verticals such as the SME platform, currency derivatives etc. When we first started our business, we were apprehensive about taking up a BSE membership. But after my meeting with BSE officials, we are enthusiastic to get a BSE license in the near future. In fact, I have even signed a letter of intent to get a membership of their upcoming commodity derivatives segment which is expected to start in October 2018.
I will reach out to you all for feedback about specific things in the near future. If need be, I will even forward your feedback to the stock exchange directly to help get your issues/requirements resolved at the earliest. They are open to a feedback driven mechanism and it is surprising how positive they are about fin-tech brokers like us. I had a few minutes at hand so I felt like sharing this with you'll.
Hope you find this useful.
Happy Trading!