Burying their long-standing rivalry, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) have agreed to share software platforms to make equity trading more convenient.
The move would be mutually beneficial for both exchanges, as it is expected to significantly boost liquidity in the country's equities and derivatives markets and benefit brokers of both bourses.
Under the new arrangement, stock feeds coming from both bourses will be available on a single trading platform. Currently, stockbrokers have to use two separate terminals to trade or view stock quotes coming from the two exchanges.
The bourses said in separate statements on Wednesday that their members will now be able to connect to each other's servers in co-location facilities offered by the bourses or other third-party infrastructure providers.
Under the new arrangement, all BSE market segments would be available shortly on NoW (Neat on Web), a facility provided by DOTEX, a subsidiary of NSE. Similarly, all NSE market segments would be available on Fastrade on Web, a facility provided by Marketplace Infratel Pvt Ltd, a subsidiary of BSE.
The NSE has more than 1,300 major companies listed on its platform; but a large number of BSE-listed stocks not covered on the NSE platform see the hottest trading.