The London Stock Exchange (LSE) has signed a contract to provide trading technology to India’s Delhi Stock Exchange (DSE) through LSE’s MillenniumIT subsidiary.
The technology deal reinforces the LSE’s intentions in the sub-continent, where huge volume growth is expected for exchanges. Last year, the LSE signed a letter of intent with India’s National Stock Exchange (NSE) to explore areas of co-operation and business opportunities.
Under the agreement with DSE, MillenniumIT will provide solutions for equity, derivatives and FX trading, as well as clearing technology. The Sri Lanka-based technology firm previously built the Millennium Exchange platform adopted by the LSE in February 2011. Borsa Italiana, the Italian wing of LSE, is also expected to move to the Millennium Exchange platform when its equities engine is moved back to Milan in Q2 2012.
“India is a dynamic and fast-developing market and we look forward to working with the Delhi Stock Exchange to introduce a high-speed, low-cost trading solution to the Indian market,” said Tony Weeresinghe, CEO of MillenniumIT and director of global development at LSEG.
About 3,000 shares are listed on the exchange which is 21% owned by a number of foreign investors, including Chicago-based hedge fund Delaware Street Capital.
The DSE was originally established in 1947 but has not traded for a decade because of a dispute in which its broker owners were to forced by Indian regulators to divest their collective stakes to less than 50% of total ownership under new ownership rules.