Tuesday, April 14, 2009

What a future...,In a bid to subdue competition, NSE has struck MCX where it hurts the most –

ZEE BUSINESS BEST B SCHOOL SURVEY

NSE fights MCX, wrongly or rightly!


Call the unhealthy nature of competition in a duopoly market, but within 6 months of the start of trading in currency futures, the titans (NSE & Multi Commodity Exchange, MCX) are at loggerheads. In a bid to subdue competition, NSE has struck MCX where it hurts the most – it placed Financial Technologies (FTIL), which has 80% stake in MCX, on the ‘watch list’, citing systems and performance issues on multiple occasions. With MCX taking recourse to legal action, the rivalry is getting filthier; and why not, after all, a daily turnover volume worth $400 million is at stake for MCX! Though NSE claims a solid reason for the action taken against FTIL, which provides software to brokers to connect to and trade in the exchanges. Worse, December 9, 2008 saw FTIL alleging that NSE was attempting to remove it from the panel of software vendors!


For more articles, Click on IIPM Article.
Source :
IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and
Arindam Chaudhuri (Renowned Management Guru and Economist).


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