BSE signs pact with IHS Markit to develop new bond valuation service

India's premier exchange BSE Ltd on Tuesday signed a memorandum of understanding with global information services provider IHS Markit to facilitate the joint development of a new service to provide a valuation of fixed income securities in India.

The service is aimed to start in the first half of 2020. The valuation service will be offered to on-shore and off-shore clients and will leverage BSE's domestic expertise and IHS Markit's extensive capabilities in developing fixed income data services for international markets.

"This collaboration with IHS Markit will provide investors access to premier fixed income pricing and valuation services based on IHS Markit methodologies customised with BSE to suit Indian market," said Ashishkumar Chauhan, Managing Director and Chief Executive Officer of BSE Ltd.

"It will benefit in Indian and international bond investors investing in Indian fixed income market," he said in a statement.

Sage Patel, Head of Pricing, Valuations and Reference Data for Asia Pacific region at IHS Markit, said the company sees significant opportunity to enhance fixed income valuation in India's growing bond market.

"Joining forces with BSE brings the expertise and network needed to be successful in creating a high-quality pricing service and create more transparency in the domestic fixed income markets to benefit issuers, investors and banks," he said.

BSE (earlier known as Bombay Stock Exchange) has played a prominent role in developing the Indian capital market. It provides an efficient and transparent market for trading in equity, debt instruments, equity derivatives, currency derivatives, commodity derivatives, interest rate derivatives, mutual funds and stock lending and borrowing.

London-based IHS Markit is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. It has more than 50,000 business and government customers, including 80 per cent of the Fortune Global 500 and the world's leading financial institutions.