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The Bombay Stock Exchange has decided to end its partnership with S&P Dow Jones (SPDJI) to manage the benchmark Sensex from December 31. The two had formed a joint venture in 2013, but BSE reckons that the partnership could not do much in terms of expanding the index to global markets.
The BSE has said that it will not renew its agreement with S&P Dow Jones Indices LLC, which expires on December 31, 2018, and is looking to develop indices through its internal team.
Prior to joining hands with the BSE in 2013, SPDJI was a partner of National Stock Exchange (NSE) in India for nearly a decade. While the partnership gave S&P a foothold in India, NSE got global reach for its benchmark index, Nifty.
The tie-up with SPDJI has not proved as successful for Sensex, market watchers said.
Experts in exchange and regulatory matters told BusinessLine that any tie-up of India’s bourses will have to be viewed in terms of their competition and global alliances.
For instance, SPDJIis jointly promoted by the Chicago Mercantile Group (CME) in the US and McGraw Hill. In India, the CME group has been a partner with MCX in the commodities space. BSE entered the commodity business from this October, and will be competing with MCX in the domestic markets. This is one of the reasons CME has not tied up with the BSE in any segment.
CME was earlier even keen to pick up a 15 per cent stake in commodity bourse MCX.
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