Mse Joins Up With Bolt, Fise

The Madras Stock Exchange has decided to link up with both BOLT - Bombay Stock Exchange's on-line trading - and Fise - Federation of Indian Stock Exchanges. A resolution to this effect was passed by the exchange council which met here on Saturday.

The much-awaited clearing house backed by a settlement guarantee fund is also being finalised. The clearing house will be operational in a couple of weeks while the trade guarantee fund is awaiting a final tie up with insurance companies.

According to sources, the race for insuring the guarantee fund is hotting up between United India Insurance and Oriental Insurance. Current indications are that the guarantee fund will have a Rs 5 crore corpus initially, while insurance backing will be for a similar amount. Details about contribution to the fund and its operational parameters are still being worked out. To become part of the Fise network, the exchange will have to pay a one-time payment of Rs 90 lakh. It's members will then be able to be a part of the trading network of Fise and pay a fee to use the interlinking network and systems of Fise, said MSE president Raamassubramanian.

Trading on Fise can be done by members with their existing terminal and will hardly require any fresh investment on their part.

For becoming a part of BOLT, the exchange will not be required to make any payment, but individual members will be hooked up with Mumbai through VSAT links.

The agreement between BSE authorities and the Madras Stock Exchange is expected to be in place in the next two to three weeks, said the exchange president.

By becoming a part of both BOLT and Fise, the MSE believes trading and arbitrage opportunities for members will increase phenomenally.