MUMBAI, March 13 India's BSE Ltd will adopt the
Eurex trading platform owned by Deutsche Boerse AG in
derivatives and cash markets under a technology alliance, the
two exchanges said in a joint statement on Wednesday.
Asia's oldest exchange, formerly known as Bombay Stock
Exchange, plans to replace its derivatives market platform with
Eurex sometime this year and then subsequently replace its cash
market platform, the statement said.
BSE is hoping to attract more foreign investors who use the
Eurex trading platform, while Deutsche Boerse pledged last month
to use future savings from cost-cutting to pay for an expansion
push into Asia.
Deutsche Boerse owns a 5 percent stake in BSE, the maximum
allowed by a single investor.
"This technology alliance strengthens our long-term
partnership with BSE, and is another milestone in our Asian
strategic roadmap," said Andreas Preuss, CEO of Eurex and Deputy
CEO of Deutsche Boerse, according to the statement.
The adoption of Eurex by BSE comes amid concerns about the
stability of domestic trading systems after a flurry of
erroneous orders from an Indian broker in October and unusual
block sales in a handful of stocks last month rattled investors.
Both those incidents took place at rival National Stock
Exchange Ltd (NSE), although the bourse has said its trading
systems were unaffected.
NSE remains the market leader in India, with the total value
of share trading reaching $526.1 billion last year, compared
with $110.3 billion on the BSE, according to World Federation of
(Reporting by Abhishek Vishnoi and Rafael Nam; Editing by Jijo