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Our Bureau

Mumbai, Dec. 8 NSE has informed its members that the exchange has responded to the legal notice from Financial Technologies India Ltd (FTIL) challenging the exchange’s decision putting FTIL’s “Equity CTCL solution” on watch-list.

NSE putting the solution on watch-list would deter its members from using FTIL’s CTCL solution for their trading terminals.

The solution which, according to FTIL, has an 80 per cent market share, allows institutions and broking houses connect to sever market segments — NSE (equity and F&O), BSE (equity, F&O and currency), MCX, NCDEX and MCX-SX (on which currency derivatives trade is conducted).

While FTIL is the software vendor for the country’s largest exchange, it is also the promoter of Multi Commodity Exchange, the country’s largest commodity futures bourse.

FTIL had issued a public notice last week challenging NSE’s action of putting its solutions on the watch-list.

According to the public notice, FTIL had written to NSE earlier to know the reasons behind this, but had got no reply.

FTIL’s public notice said the company had requested NSE for the currency derivative API (Application Programming Interface — a software password code). This would enable those traders using FTIL’s front-end to connect to NSE’s currency futures platform.

Brokers using FTIL’s solutions would then have to install a separate NSE terminal, said sources.

FTIL received their first official communication from NSE about putting FTIL on the watch-list on October 17, their public notice said.

Interestingly, FTIL’s subsidiary company MCX-SX commenced currency futures trading in the first week of October.

FTIL said the company was informed only after communication on the same was sent to member clients of NSE.

FTIL alleged that NSE “has never disclosed and published openly and transparently the definition or criteria to put any vendor on its watch-list.”

“There is no evidence of any other company being put on the watch-list, according to the notice, despite those companies being replaced by FTIL (solutions) at almost all NSE member clients,” said the FTIL notice.

According to marketmen, a war seems to be brewing between NSE and FTIL, the markets technology solutions provider as both of them battle to gain a larger share in the budding currency futures trading market.

Neither NSE nor FTIL officials were willing to comment on the matter.

The scrip of Financial Technologies was marginally up, by 0.29 per cent, on Monday.

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