Risky convergence

Universal exchanges must have robust systems in place

The Securities and Exchange Board of India (Sebi) has cleared in principle the convergence of financial exchanges, allowing the same exchange to offer products in the equity, commodity derivatives, debt and currency segments. There is a two-phase timeline and Sebi envisages the launch of converged trading by “universal exchanges” from October this year. This clearance will enable the BSE and the National Stock Exchange (NSE) to launch commodity derivatives trading and enable the Multi Commodity Exchange of India (MCX) and the National Commodity and Derivatives Exchange (NCDEX) to move into the equity segments. Detailed guidelines are yet to be issued,