INSUBCONTINENT EXCLUSIVE:
will assert an intellectual property right over its popular equity benchmark
prices of Nifty futures contracts.
Such lawsuits are nothing new in the world of index providers and exchanges.
In 2006, the New York
Mercantile Exchange failed to persuade both a United States District Court and the Second Circuit Court that Intercontinental Exchange Inc
was violating the copyright of Nymex settlement prices by using them in its over-the-counter derivative contracts
The judges ruled that settlement price wasn't one expression of an idea where others were possible
pertaining to the former should be traded is getting tiresome
Hedge funds investing in India were perfectly happy with SGX Nifty futures; and NSE earned a license fee from SGX
But in February, NSE and two other Indian bourses ganged up, and said they wouldn't allow their prices to be used in overseas contracts
NSE gave SGX six months to wind up an 18-year-old product.
MSCI Inc
SGX, meanwhile, found a clever workaround to protect its own revenue
is approaching, NSE has gone to court
Suppose it does succeed in getting an injunction and also finds a way of enforcing it in Singapore
SGX won't be the only loser
Global money managers will also be affected
Come June 4, there will be no SGX Nifty
NSE broker-members can now accept United States customer funds for trading derivative contracts without first registering with the United
States Commodity Futures Trading Commission as commission merchants
However, foreigners are reluctant to go anywhere near the Indian tax system
necessarily reflect the opinion of economictimes.com, Bloomberg LP and its owners)
