NSEIX and London Stock Exchange sign MoU to deepen capital market ties
NSEIX and London Stock Exchange sign an MoU to boost capital market ties through dual listings and cross-border trading opportunities.
In a major move to strengthen global financial connections, NSE IFSC Limited (NSEIX) and London Stock Exchange plc have signed a Memorandum of Understanding (MoU) to explore strategic collaboration. This partnership aims to drive cross-border growth by creating innovative listing and trading opportunities for issuers and investors in both jurisdictions.
Expanding Financial Market Horizons
The bilateral agreement establishes a comprehensive framework to pursue commercial opportunities across various financial market segments. Under this new arrangement, both bourses have committed to evaluating several key areas, including:
- Dual and Cross-Listings: Exploring options for products including equity, fixed income, and exchange-traded funds (ETFs).
- New Financial Offerings: Plans to trade existing financial instruments while simultaneously creating new ones.
- Derivative Contracts: The prospective rollout of derivative contracts listed on NSEIX that reference FTSE Russell indices as the underlying benchmark.
- Index and Data Integration: Examining the joint creation of new equity indices, cross-border trading connectivity, and market data distribution.
A Milestone for India-UK Economic Ties
V. Balasubramaniam, Managing Director and Chief Executive Officer of NSEIX, highlighted that this agreement is a significant milestone arising from broader bilateral economic dialogues. He noted that the collaboration is rooted in The India-UK Comprehensive Economic and Trade Agreement (CETA), which seeks to open new avenues for 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,” Balasubramaniam stated.
He further emphasized that the partnership leverages the institutional strengths of both entities: NSEIX as a market leader in the GIFT IFSC ecosystem, and the London Stock Exchange as the largest and oldest stock exchange in the United Kingdom.
Strengthening Global Capital Ecosystems
Dame Julia Hoggett, Chief Executive Officer of London Stock Exchange plc and Head of Digital and Securities Markets at LSEG, welcomed the development, noting London's strong track record of building collaborative partnerships with exchanges globally. She expressed delight in strengthening the relationship with NSEIX to explore new growth opportunities.
“The signing of this MoU marks the next step in our sustained efforts to connect two of the world's great capital markets, to create tangible benefits for the investors and companies we serve,” Hoggett said.