NSE signs agreement with Nasdaq for post-trade technology, strategic partnership

Nasdaq's new customised technology will replace the indigenously built system

Published: Jul 2, 2018

Life is not a template and neither is mine. Like several who have worked as journalists, I am a generalist in my over two decade experience across print, global news wires and dotcom firms. But there has been one underlying theme in each phase; life gave me the chance to observe and tell a story -- from early days tracking a securities scam to terror attacks and some of India's most significant court trials. Besides writing, I have jumped fences to become an entrepreneur, as an investment advisor -- and also taught the finer aspects of business journalism to young minds. At Forbes India, I also keep an eye on some of its proprietary specials like the Rich list, GenNext and Celebrity lists. An alumnus of Xavier Institute of Communications and H.R College of Commerce and Economics in Mumbai, I have worked for organisations such as Agence France-Presse, Business Standard, The Financial Express and The Times of India prior to this.

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Image: Aditi Tailang

The National Stock Exchange (NSE), in a move to upgrade its existing clearing and settlement systems, has struck a partnership with US technology bourse Nasdaq, whereby the latter will provide a customised real-time clearing, risk management and settlement technology to the local exchange.

“Clearing and settlement is currently provided by NSE’s wholly-owned subsidiary National Stock Exchange Clearing Corporation (NSCCL) through an indigenous technology. But this required an upgrade. Nasdaq’s new system will replace the old one,” Vikram Limaye, NSE’s managing director and CEO told media on Monday at a press conference along with Nasdaq’s president and CEO Adena Friedman.

The new technology system would be completely in place over the next 24 to 36 months, Limaye said. The two exchanges signed an agreement to explore business opportunities across listings, corporate and market services and data and innovations in products, processes and technology.

Limaye clarified that Nasdaq’s technology had been customised to meet India’s unique requirements relating to regulatory, risk management and margining systems. Both officials said that there was no discussion relating to the possibility of Nasdaq picking up a stake in the exchange in the future.

Regarding the issue of exclusivity of the technology, Friedman said that Nasdaq’s market infrastructure – which includes trading, risk, index clearing and surveillance systems – are operated in more than 100 marketplaces, regulators, clearing houses and securities depositories across the Americas, Europe, Asia, Africa and the Middle East.

But the technology it has customised for the NSE, will be exclusive and not be available to other exchanges, she added.

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