India’s national stock exchanges to stop data feeds to foreign rivals

This article is more than 12 months old

India's national stock exchanges will stop providing data feeds to foreign rivals and eventually halt the trading of offshore derivatives tied to India's benchmark indices like the Nifty 50, as part of a move to protect their turf and prevent trading volumes from moving overseas.

The shocking news is expected to deal a blow to about 10 exchanges from Chicago to Dubai where Indian derivatives are traded, while creating disruptions for index providers like the MSCI.

The Singapore Exchange (SGX), which offers the popular SGX Nifty 50 index futures, was busy soothing outraged market participants over the weekend.

The SGX yesterday said the market for its entire India suite of products will open and operate normally today. At the very minimum, it will be business as usual till August, it added.

Under SGX's licence agreement with India's National Stock Exchange (NSE), there is a six-month notice period for termination.

The SGX said it is working with the NSE towards a "viable long-term solution" that would help clients retain existing positions, and hopes to announce details shortly.