NSE IFSC Ltd (NSE IX), the international exchange at GIFT City, and London Stock Exchange plc (LSE) have signed a memorandum of understanding (MoU) to explore dual and cross-listings of equities, fixed-income securities, and exchange-traded funds (ETFs), along with cross-border trading connectivity and new financial products.
Collaboration to explore new financial products
The proposed collaboration will also explore derivatives listed on NSE IX using FTSE Russell indices as underlying benchmarks, joint development of equity indices, trading of existing financial products and market data distribution, an official release stated here on Wednesday. The agreement provides a framework for the exchanges to identify opportunities for issuers and investors in both markets, with the potential to expand investor access and improve liquidity.
India-UK trade agreement provides impetus
V Balasubramaniam, managing director and chief executive officer of NSE IX, said the seeds of this collaboration germinated from the India-UK Comprehensive Economic and Trade Agreement (CETA), which aims to open new avenues in capital markets connectivity and financial services integration between London and India. The LSEG and NSEIX have taken this first step towards collaborations through dual listings and cross listings across products and exploring a cross-border connect between the two exchanges to provide seamless bidirectional trading opportunities leading to higher liquidity and a larger pool of investors.”
LSE highlights opportunities for companies and investors
Dame Julia Hoggett, chief executive officer of London Stock Exchange plc and head of Digital & Securities Markets at London Stock Exchange Group (LSEG), said the exchange has a strong track record of building collaborative partnerships with exchanges globally. She said the MoU marked another step in efforts to connect the Indian and UK capital markets and explore growth opportunities that could benefit the companies and investors they serve.
The proposed partnership could provide companies with additional avenues to reach investors in both markets, while giving investors access to a wider range of financial products.