BSE signs MoU with Shanghai Stock Exchange
Joins hands to facilitate the development of channels of communication and foster relationship between India and China to benefit the financial services industry
Mumbai July 22, 2019: BSE, India’s premier exchange and the world’s fastest Stock Exchange with a speed of 6 microseconds has signed a Memorandum of Understanding (MoU) with Shanghai Stock Exchange to facilitate the development of channels of communication and to foster a continuing relationship between the parties for the benefit of financial services industry in the People’s Republic of China and the Republic of India.
The MoU is signed on July 22, 2019. The MOU shall facilitate the maintenance of orderly securities markets in the two countries.
Speaking on the occasion Shri Ashishkumar Chauhan, MD & CEO, BSE, said “We are happy and delighted to associate ourselves with one of the world's largest capital markets. The BSE-Shanghai engagement would benefit global investors, facilitate co-operation between the parties and enable coordination of exchange of information.”
The exchanges have agreed to co-operate to enhance understanding of activities in each other’s market. The parties shall conduct joint research to explore the possibility of further cooperation in the area of growth markets and to support the development of small and medium enterprises, dual listing, development of fixed income market, development of joint trading platform for off-shore RMB products, experience sharing and cooperation on IT system.
BSE (formerly Bombay Stock Exchange) established in 1875, is Asia’s first & now the world’s fastest Stock Exchange with a speed of 6 microseconds. BSE is India’s leading exchange group and has played a prominent role in developing the Indian capital market. BSE is a corporatized and demutualised entity, with a broad shareholder base that includes the leading global exchange- Deutsche Bourse, as a strategic partner. BSE provides an efficient and transparent market for trading in equity, debt instruments, equity derivatives, currency derivatives, interest rate derivatives, mutual funds and stock lending and borrowing.
BSE also has a dedicated platform for trading in equities of small and medium enterprises (SMEs) that has been highly successful. BSE provides a host of other services to capital market participants including risk management, clearing, settlement, market data services and education. It has a global reach with customers around the world and a nation-wide presence. BSE’s systems and processes are designed to safeguard market integrity, drive the growth of the Indian capital market and stimulate innovation and competition across all market segments.
Indian Clearing Corporation Limited, a wholly owned subsidiary of BSE, acts as the central counterparty to all trades executed on the BSE trading platform and provides full innovation, guaranteeing the settlement of all bonafide trades executed. BSE Institute Ltd, another fully owned subsidiary of BSE runs one of the most respected capital market educational institutes in the country. Central Depository Services Ltd. (CDSL), associate company of BSE, is one of the two Depositories in India.
About Shanghai Stock Exchange
Stock trading started in Shanghai as early as 1860s. In 1891, the Shanghai Share brokers Association was established, which was regarded as the primitive form of stock bourses in China. Later in 1920 and 1921, the Shanghai Security Goods Exchange and the Shanghai Chinese Security Exchange commenced operations respectively. Since 1980, China's securities market has evolved in tandem with the country's introduction of reform and opening up policy and the development of socialist market economy. In 1981, trading in treasury bonds was resumed. In 1984, stocks and enterprise bonds emerged in Shanghai and a few other cities. On November 26, 1990, Shanghai Stock Exchange (SSE) came into existence, and on December 19 of the same year, it started formal operations. Shanghai Stock Exchange has developed into a comprehensive exchange with stocks, bonds, funds and derivatives products, world-class exchange system and communication infrastructure, and effective self-regulatory system. With these advantages, the scale of the Shanghai securities market and the number of investors is growing fast. It is the preferred choice exchange of the region. India and China have a great potential for economic cooperation, with both countries witnessing rapid growth.
Yatin Padia / Rahul Vyas / Mihir Dani/ Shruti Nitesh
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