The London Stock Exchange Group (LSEG) is likely to pull out of a deal that would have revived the Delhi Stock Exchange, despite having delivered technology to the bourse last year.
LSEG agreed to supply the Delhi bourse – first established in 1947 – with a trading platform developed by its MillenniumIT subsidiary in November 2011.
“MillenniumIT signed a technology agreement with the Delhi Stock Exchange in 2011. This was delivered to the DSE, ready for implementation, in 2012,” said a spokesperson for the LSEG, who also denied claims that the UK exchange group has a 5% stake in the bourse.
The deal included technology solutions for equity, derivatives and FX trading as well as clearing technology.
Sources have claimed the technology implementation is looking increasingly unlikely and that LSEG has backed away from the deal.
The collapse of the project is believed to be due to the failure of the Delhi exchange to establish a management board to oversee the re-establishment of the market.
India’s two main exchanges, the Bombay Stock Exchange and National Stock Exchange, are facing increased competition following the launch of MCX-SX in February. The exchange has over 400 members and is taking steps to grow activity on its platform with liquidity incentives.