The National Stock Exchange and BSE Ltd (formerly Bombay Stock Exchange) have decided to bury their hatchets and become friends. Or so it seems, from the joint press release issued by the exchanges last week.
Under this agreement, stock price feeds coming from the BSE and NSE will shortly be available on a single trading platform. So brokers/traders will no longer have to use separate terminals to execute trades or view the price quotes coming from the two exchanges.
There could be a deeper reason for the new-found friendship between the two exchanges.
Also, members of both exchanges will soon be able to use inter-exchange algorithmic trading, wherein brokers can run a trading software program that captures the price differential on two exchanges for the same stock (buy on the exchange where price is lower and sell it on the exchange it is dearer, or the same trade in reverse) or automatically route the trade to the exchange with the best price. The last point had been a bone of contention between the two exchanges for nearly two years now.
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