Financial Technologies (India) Ltd on Monday alleged that the National Stock Exchange, which has kept it on the 'watch-list', was also attempting to remove the firm from the panel of software vendors.
"(The) NSE is also attempting to remove FTIL from its empanelled list of vendors rather than responding to the queries and resolving the issue," Financial Technologies (India) Ltd (FTIL) said in a public notice published in The Economic Times.
The row between the two entities started when FTIL sought permission for currency derivatives Application Protocol Interface (API) access to integrate with the current CTCL solution the NSE members were using. The integration with CTCL is believed to help brokers to access all markets -- equity, F&O, commodity and currency derivatives -- on a single screen.
FTIL has been empanelled with the NSE since 1998 as a CTCL solutions provider for equity as well as futures and options (F&O). The other empanelled members are NSE.IT (owned by NSE) and Omnesys.
Financial Technologies, which is also the main promoter of commodity bourses MCX and stock exchange MCX-SX, in the public notice demanded clarification from the NSE for keeping it on the 'watch-list'.
Why the 'solid reason' (for keeping the firm under watch) has not been communicated to FTIL to date and the company has not been given an opportunity to represent its case, inflicting damages to FTIL, its member clients and the financial system, according to the public notice.
Last week, the NSE spokesman had told PTI that "there has to be a solid reason for keeping FTIL on the watch-list. We will let you know through (an) official release."
FTIL had written to the NSE on October 10, 16 and 24 wanting to know from when FTIL had been kept on the 'watch-list' and the reasons behind it, the notice said.
Financial Technologies had requested the currency derivative API after its subsidiary company MCX-SX commenced currency futures trading on October 7, while it received the first official communication from the NSE putting it on watch-list on October 17, the company said, adding that FTIL was informed after communication was sent to member clients. FTIL alleged that "(the) NSE has never disclosed and published openly and transparently the definition or criteria to put any vendor on its watch-list".
There is no evidence of any other company being put on the watch-list, according to the notice. There is no process by which a neutral party can give a 'watch-listed member' a hearing in an open, fair and transparent manner, it said.
FTIL provides CTCL technology to exchanges like the BSE, MCX, NCDEX and MCX-SX also.
