NSE, FTSE talks on futures in final stages

The National Stock Exchange said on Wednesday that it is in advanced talks with London Stock Exchange's FTSE to launch derivatives trading in the FTSE 100 index.

“NSE and FTSE are in advanced talks with respect to the licensing of FTSE 100 to NSE for facilitating launch of derivative contracts trading on FTSE 100 in NSE,” a joint statement from the exchanges said.

An NSE official said the talks are nearing conclusion and that the two exchanges are finalising the agreement to get the FTSE 100 on the Indian bourses. “The announcement will be made in the next two months.”

The statement had also termed as baseless reports that FTSE sees no possibility of any association with the NSE, as the Indian bourse had a joint venture with S&P.

NSE had tied up with LSE in July last year, signing a letter of intent to explore cross-listing of their products. “It (letter of intent) also conveys the intention of both parties to evaluate other joint strategic opportunities, such as allowing access to each other's market as and when regulatory framework permits,” a joint statement by the exchanges had said then.

NSE-CME pact

In March, the NSE had entered into a cross-listing pact with Chicago Mercantile Exchange along with the agreement to develop and distribute financial products and services. The Nifty Futures contracts are being traded on the CME since July 19.

Last month the Securities and Exchange Board of India gave the go-ahead for the introduction of index derivatives on foreign indices in India.

In a circular issued to the stock exchanges, the market regulator had said they could henceforth introduce index derivatives on a foreign index denominated in Indian rupees. Exchanges could choose from 24 exchanges — eight in the Americas, Asia-Pacific, Europe, Africa and West Asia.