27 August 2012

Icap Institutional Stock Exchange of India Ltd.

Today's Economic Times carries the story of a fifth possible exchange on the horizon.

"Capital market regulator Securities and Exchange Board of India is examining a proposal by ICAP India - the subsidiary of the world's largest inter-dealer broker ICAP plc - to set up an exchange for corporate bonds and fixed income derivatives.

The proposed trading platform intends to purely focus on the wholesale market where institutional clients like banks, mutual funds, insurance companies and primary dealers can directly trade. It would be similar to the negotiated dealing system - the anonymous screen-based trading platform for government securities that is restricted to institutions and monitored by the Reserve Bank of India."

The new exchange will be different from the other exchanges - in that it will only cater to large institutional needs in the fixed income and fixed income/interest rate derivatives front. If and when given,  the license would further the goal of international regulators to push more homogenised derivatives products to the well regulated exchange space.

Disclosure: We have been assisting ICAP India Pvt. Ltd. in its application to SEBI.


Unknown said...

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