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26 November 2018

BSO & INDIA INX – A PARTNERSHIP BUILT FOR GROWTH

By Tom Fulford-Brown, Sales Director BSO

There have been some exciting financial market developments in India in recent times, but perhaps one of the most significant initiatives impacting these markets is at Gujarat International Financial Technology (GIFT) City.

India’s first international exchange – India INX – commenced trading in GIFT City in January 2017. The subsidiary of BSE offers a diversified portfolio of products and technology services, facilitating co-location of members in its own data center at GIFT International Financial Services Centre (IFSC).

 

Breaking Down Barriers

One of the main motivations for establishing GIFT City was to tap into the demand for Indian contracts evidenced by trading volumes on the Singapore Exchange (SGX). The Indian government is keen to follow the lead of Dubai and other emerging financial centers and has reduced barriers to entry to encourage a wide range of financial services institutions to set up in Gujarat.

For example, having all trades executed in US dollars reduces FX exposure for trading firms, while the exchange trades 22 hours a day to facilitate international traders. All of these factors could contribute to significant growth in volumes over the next 18 months.

 

Partnership

As India is a key market for BSO, we are delighted to have recently signed a joint agreement with India INX and to announce that we are the first global network provider to offer direct connectivity to the exchange. I spoke recently with Sameer Patil, Head of Business Development at India INX and he told me why the partnership with BSO is so important, telling me, “India INX’s target market participants are predominantly foreign electronic and algorithmic trading firms, for whom direct connectivity and the lowest latencies are essential, particularly from locations such as Dubai, Hong Kong, and Singapore. This is why we’ve partnered with BSO, as they clearly understand the connectivity and infrastructure needs of the international electronic trading community and are able to meet those needs.”

 

Low Latency

Promoted as one of the world’s fastest exchanges with a turn-around time of 4 microseconds, India INX market participants increasingly require network technology that can support their need for speed. In tandem with this development, BSO have designed an ultra low-latency connectivity service in/out of India INX to global markets, which is specifically optimised to address the growing demand from high-speed electronic trading firms looking to capitalise on the various hedging, speculation, investment and arbitrage opportunities that the exchange enables through its derivatives contracts.

 

Satisfying The Demand

As part of this initiative, demand is growing both from investors wanting to trade India INX from across the globe as well as India INX exchange members wanting to access global markets. BSO services that are being consumed to satisfy this demand include international and national point-to-point connectivity, low-latency ethernet connectivity, remote access, and co-location for firms wanting to trade this new market.

We welcome the India INX initiative at GIFT and are enjoying working directly with the exchange. This is definitely a growth area, and we look forward to helping facilitate its progress.

If you are interested in connecting to India INX, or if you are already trading on the exchange and are looking to improve your global market access, contact us today.