Ending data-sharing, licences with offshore bourses a bad move; here's why

Fixing the policy issues that have eroded Indian financial markets' competitive edge will be postponed if the three exchanges unilaterally terminate their data-sharing

The joint press release by three Indian exchanges to unilaterally terminate their data-sharing and license arrangements with offshore platforms, which trade derivatives with Indian underlyings, is problematic. It seeks to equate the exchanges’ market share in trading of Indian derivatives with the best interests of the Indian markets. The press release, on the contrary, raises several concerns for the Indian capital markets. First, this measure will increase the cost of raising capital by Indian issuers abroad. Second, the commercial wisdom underlying this measure is not entirely clear and warrants some explanation for the exchanges’ shareholders. Third, this joint proclamation underscores