The Bombay Stock Exchange (BSE) is considering scrapping a deal with Nasdaq OMX for the implementation of a trading and clearing platform following concerns about the technical specifications and delivery of the system.
The Indian exchange signed an agreement with OMX in January - prior to completion of the Nasdaq OMX merger - for a trading and clearing platform to support its derivatives and cash securities operations . Sub-contractors Headstrong and HCL Technologies were expected to deliver some of the components and services required for the project.
But BSE chairman Jagdish Capoor has told Bloomberg reporters that the project may be ditched following concerns over the technical specifications of the Nasdaq OMX platform and the time frame for delivery.
The first phase of the system roll-out was targeted for launch by mid 2008, but Capoor said Nasdaq OMX would need 18-24 months to roll out the new technology.
A final decision will be made after meeting executives from Nasdaq OMX, said Capoor.
The BSE is looking to boost its IT infrastructure to match the growing needs of the marketplace. The new trading platform is part of BSE's strategy to increase volume capacity in the cash market.
Bombay Exchange May Scrap Nasdaq OMX Trading System - Bloomberg