NMCE inks pact with Financial Tech

The Ahmedabad-based National Multi Commodity Exchange (NMCE), the country’s first national commodity exchange, has entered into a technology tie-up with Financial Technologies (India), a supplier of trading software and promoter of India’s largest commodity exchange, the Multi Commodity Exchange (MCX).

NMCE has paid FTIL Rs 75 lakh as guarantee money for technological access for its members and clients. Now, over 300 NMCE members will be able to get licence for FTIL’s most popular trading software, ODINTM, which facilitates inter-exchange arbitrage, besides providing other benefits.

Available for an average fee of Rs 10,000, ODINTM is considered as the most credible trading software for equity and commodity trading and has a market share of over 80 per cent. However, the licence fee varies depending upon the deal type.

ODINTM is one of the most preferred computer-to-computer-link solution and has in the last 10 years revolutionalised electronic trading in India.

FTIL has sold over 500,000 licenses for over 100,000 trading workstations, servicing over 1,000 institutions and brokerage clients, including the top 30 banks in India. FTIL is the second-largest trading technology company in the world after the NASDAQ-OMX group.

“This is the integration of the country’s best technology provider with the most efficient risk management system and best experts of the commodity space,” said Jignesh Shah, chairman and group CEO, FTIL.

About the stand-off between the National Stock Exchange (NSE) and FTIL over technology sharing, Shah said, “As the matter is sub-judice, we cannot comment on that.”

NSE chose not to give the application programming interface (API) for its currency futures segment to FTIL. As a result, users of the front-end trading solutions either have no access to NSE’s currency futures segment or have to make a separate investment to access it. FTIL has been rather public about its issues with NSE and has also issued it a legal notice.

Trade sources find ODINTM the most successful front-end trading solution as it provides inter-exchange arbitrage opportunity, efficient risk management solutions, etc, on a single screen.

The absence of ODINTM requires an additional computer screen to view currency trade data.