NSE, Nasdaq ink pact for post-trade tech

Mumbai: The National Stock Exchange (NSE) on Monday signed a technology pact with the American tech bourse Nasdaq to source technology for offering customised real-time clearing, risk management and settlements.

The agreement will executed over the next 24 to 36 months.

"We provide technology to nearly 100 exchanges across the world. Our agreement with the NSE will help in delivering customised real-time clearing, risk management and settlement technology on Nasdaq platform to NSE," Nasdaq president and CEO Adena Friedman told reporters here.

"We will use this new partnership to bring Nasdaq's premium market technology to the Indian capital market and to explore new opportunities for collaboration across each other's businesses particularly around listings, corporate services and our market services," she said.

In addition to this post-trade agreement, Nasdaq has also signed an agreement with NSEIT to utilise its capability for implementing project augmentation globally.

Both the exchanges also signed a Memorandum of Understanding (MoU) to explore business opportunities across listings, corporate and market services and data and innovations in products, processes and technology.

The new post-trade technology will replace NSE's current clearing and settlement system operated by the National Securities Clearing Corporation (NSCCL), a wholly owned subsidiary of NSE.

"We developed our technology in-house only and the adoption of this new technology platform customised for our needs will take 24 to 36 months period to implement. It will also allow NSCCL to stay nimble and manage the evolving ecosystem far more efficiently," Friedman said.

"The continuously evolving market needs products and effective risk management tools which require us to continue to evolve our delivery models," NSE managing director and chief executive officer Vikram Limaye said.

Replying on the exclusivity of agreement with the NSE, Friedman said the exchange provides technology to 100 marketplaces, regulators, clearinghouses and central securities depositories across the world, but it will customise solutions for NSE, which will not be available to other exchanges.

On NSE's issue with the Singapore Exchange, she said Nasdaq provides technology to Singaporean bourse as well.

Limaye said Nasdaq is providing only technology and no discussion took place on stake sale with them.