Wednesday, 11 January 2017

India's first international exchange from BSE - India INX

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Prime Minister Narendra Modi with Gujarat CM Vijay Rupani and MoS Arjunram Meghwal at the inaugural function of BSE INDIAINX (India International Exchange) in Gandhinagar

BSE's India INX: Important things to know about our 1st international exchange


Prime Minister Narendra Modi on Monday sounded the inaugural bell of BSE's first international exchange, the 'India International Exchange (India INX)', at the Gujarat International Finance-Tec (GIFT) City in Gandhinagar.

The India INX is located in the country's first International Financial Services Centre (IFSC), which is located in GIFT City. The India INX is a wholly owned subsidiary of BSE Ltd is expected to start trading middle of this month.
 
                                                                   10 Facts about India INX

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1) World's fastest international exchange: India INX will be the fastest international exchange in the world in terms of order response time, with a median trade speed of four microseconds. This is better than BSE's domestic exchange at Mumbai, which has a order response time of six microseconds. In comparison, the second fastest international exchange at Singapore has an order response time of 60 microseconds. 

2) In step with the rest of the world:India INX at will be open for trading for 22 hours every day. The exchange will open for trading activity daily at 4 am when exchanges in Japan open, and close at 2 am when exchanges in the US close. 

3) Investments set for coming years:BSE will be investing around Rs 500 crore in the international exchange over the next three years

4) Many of its employees are relocating from Mumbai: India INX will begin operations with 100 employees, most of whom have relocated from Mumbai, apart from local and foreign personnel.


5) What can it trade in: The exchange can trade securities and products other than Indian rupees. The securities and products that could be traded on the India INX are: equity shares of companies incorporated outside India, depository receipts, debt securities, currency and interest rate derivatives, index based derivatives, commodity derivatives and such other securities that may be allowed.

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6) Only derivative products for now: It will offer only derivative products – in equity, currency and commodities – for the first six months at least. This has been described as the first phase by BSE Managing Director and CEO Ashishkumar Chauhan. 

7) More instruments to follow: During the second phase, it shall offer depository receipts and bonds. The second phase is likely to take six months to one year for implementation.

8) People want in: As many as 250 trading members, including commodity brokers as well as brokers settled overseas, have expressed interest to function at India INX. 

9) Robust security: BSE Managing Director and CEO Ashishkumar Chauhan has said that a robust risk management system is in place to prevent market manipulation and money laundering. 

10) Mock trading commenced last year:India INX and the India Clearing Corporation have commenced mock trading from India INX's data centre at GIFT City from December 17, 2016.