NSE inks pact with Nasdaq for offering real-time clearing, settlements

The National Stock Exchange of India (NSE) has entered into an agreement with US bourse Nasdaq, to bring the latter’s clearing, risk management and settlement technologies here.

The new post-trade technology will replace NSE’s current clearing and settlement system operated by the National Securities Clearing Corporation, a wholly owned subsidiary of NSE, over the next 24-36 months.

“Our systems are all indigenously developed and we are working with Nasdaq to customise its global platform to meet Indian needs,” said Vikram Limaye, managing director at NSE. The upgrade in technology, said, would help prepare it for future regulatory change in areas such as exchange interoperability, dual listing and market surveillance. 

NSE will adopt the Nasdaq Financial Framework, enabling all asset classes to be cleared and settled in one system. The changes are aimed to raise efficiency and reduce post-trade risks. 

The two exchanges also signed an agreement to utilise NSE’s information technology subsidiaries’ capability in project augmentation globally. And, to explore opportunities across listings, corporate and market services, and data and innovation in products, processes and technology.

Nasdaq’s market infrastructure technologies, including trading, real-time risk, clearing and market surveillance systems, are operated in over 100 jurisdictions.   

Limaye added NSE had not got new showcause notices from the Securities and Exchange Board of India (Sebi) in the unfair access case. “We will once again try to settle the case through consent after we get the notice,” he said. 

In March, Sebi had returned NSE’s consent plea, citing pending investigation. Sources say Sebi could issue fresh notices to NSE and other entities this week, based on the latest investigations.