India International Exchange is a newly formed exchange in India. These big differences of India International Exchange from BSE are unbeatable.
India International Exchange (or India INX) is actually a fully-owned subsidiary of Bombay Stock Exchange (BSE). This global exchange is one of the India’s first & world fastest international exchange.
It is set to go live for trading from January 16, 2017. This global exchange is located at International Financial Services Centre (IFSC) at Gujarat International Financial Tec-City (GIFT City) in Gandhinagar, Gujarat (India).
INDIA INX is a global exchange that is set up by Bombay Stock Exchange (BSE). It will provide electronic trading platform for companies that are going abroad.
According to a post published in Livemint, India INX is targeting foreign investors in an attempt to take on the $48 billion worth of offshore trade & business activities from foreign stock markets of Singapore, Dubai and Hong Kong.
However, this exchange is quite different from NSE or BSE stock exchange for domestic investors in India. Here are 10 key factors that differentiate BSE or NSE from India International Exchange:
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(1) Trade Execution Speed
It is one of the most unbeatable differences of India International Exchange from BSE or NSE. Stock markets are highly volatile in nature. Investors or traders need to think & act as fast as possible.
It is something needed to capture great opportunities that can change every second. It is usually the point when trade execution speed gains significance.
According to a post published in IndianExpress, India International Exchange (or India INX) has an order response time of four microseconds (median trade speed).
It is quite better than BSE’s own system at Mumbai that has a speed of six microseconds. However, the fastest global exchange in the vicinity of India is that of Singapore with a response time of 60 microseconds.
The extra ordinary speed of India INX is due to ‘T7’ trading platform that is fastest system in the world. Additionally, it is also offering free co-location rack space for stock brokers in its own Data Centre at GIFT City.
This co-location facility can help national & international stock broker to locate their trading system at the exchange premises. This will help them in faster trading. The rack space is being provided on a first come first serve basis.
Image Source: thehindubusinessline