Financial Daily from THE HINDU group of publications
Monday, Mar 18, 2002
ISS mock trading in NSE derivatives begins today
COIMBATORE, March 17
ISE Securities and Services Ltd (ISS) will commence mock trading in the derivatives segment of the National Stock Exchange (NSE) from Monday.
Disclosing this to presspersons, Mr. M.R. Mayya, Chairman of the Inter-Connected Stock Exchange of India Ltd (ISE) and ISS (a subsidiary of ISE), said that live trading would commence shortly thereafter.
Traders and dealers associated with ISE and ISS are spread across 45 cities, including the 13 Regional Stock Exchanges.
Mr Mayya, who was here in connection with the board meeting of ISE, pointed out that the business turnover of ISS would more than double to about Rs150 crore from the present level of Rs 60 crore per day, if the investors traded more actively and their confidence in the market was grew. ``Trading in derivatives will further strengthen the turnover,'' he said, adding that derivative trading on the NSE was picking up fast.
The ISE Chairman conceded that 90 per cent of the securities listed on the RSEs lacked liquidity and voiced the need for addressing this area. The RSEs, members said, survived because of the ISS.
These exchanges had not shown great interest in investing in technology, because their members traded through the ISS segment.
Mr Mayya pointed out that the technology used by ISS was highly cost-effective.
``In ISS, we follow a tight risk-management system as far as the securities pay-in and pay-out are concerned and that was how we managed to survive the roller-coaster ride,'' he said.
Stating that the `equity cult' was affordable and equitable, he said `something should be done to make the primary market more attractive'.
He lamented that the investors' associations were not functioning properly because of lack of funds.
He emphasised the need for conducting investor education programmes and pointed out that the ISS had a major education schedule.
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