BSE, NSE lock horns in high-stakes derivatives market showdown
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A rivalry between India’s major stock exchanges has entered a high-stakes phase, as they wrestle for control over the derivatives market with potential implications for everything from trading volumes to liquidity flows. The National Stock Exchange of India Ltd. is trying to change the expiration for listed derivative contracts from Thursday to Tuesday — a day traditionally dominated by its smaller bourse, BSE Ltd. A shift could help the NSE regain market share from its rival, which has benefited after curbs by the capital markets regulator hit trading of NSE’s most-popular options, pushing traders to look for alternatives at the BSE. The expiry-day wrangling is more than just a turf war. It can potentially reshape India’s options trading by fragmenting liquidity, influencing fee income and forcing brokers to realign their trade execution strategies. For the NSE, retaining its competitive edge becomes crucial ahead of a long-anticipated l...