Credit Suisse has announced the execution of its first trades on India's Bombay Stock Exchange and National Stock Exchange using smart order routing (SOR) technology.
Credit Suisse's SOR offering in India enables investors to access the best price available at a given time for stocks listed on both exchanges.
“The availability of SOR in India is an advantage for investors in this rapidly-expanding market, enabling them to achieve cost savings and a more efficient execution process,” said Murat Atamer, head of product, Advanced Execution Services (AES) for Asia-Pacific at Credit Suisse, adding that SOR trades handled by the broker have so far resulted in an average saving of six basis points, more than the average bid/offer spread for the names traded.
“There are price discrepancies at the moment because it is difficult to trade both exchanges manually, but SOR means clients can have confidence that they are achieving best execution without having to watch two markets,” added James Rae, head of AES sales for south-east Asia at Credit Suisse.
The Securities and Exchange Board of India, India's financial markets regulator, published a circular allowing use of SOR in the securities market on 27 August 2010. In order to use SOR technology in India, brokers must file an application with the NSE and BSE based on guidelines issued by the two exchanges.