BSE writes to Sebi on NSE's 'unfair' trade practices

MUMBAI: The Bombay Stock Exchange has written a letter to Sebi alleging that rival NSE and its associate DotEx International were acting in an unfair manner by trying to block trade flow to BSE.

In a letter dated August 18, BSE’s senior general manager for surveillance and inspection Soundararajan V has alleged that DotEx was getting BSE feeds for free but was charging a fee for providing the same to its members.

In contrast, BSE’s technology arm Market Place Technologies was providing NSE feed free of cost, the letter said. Members of both NSE and BSE use cloud-based order routing system, which is provided by their respective technology arms. NSE’s cloud is called NOW (NEAT on Web) and BSE’s is known as FOW (FASTRADE on Web).

The letter said that while NSE has allowed members to access NOW through multiple sources like leased line, V-sat, and internet, use of FOW was allowed only through internet.