India’s financial markets began moving toward electronic trading in the 1990s. The change was gradual and involved much more than moving trading activity onto computers. Brokers needed electronic access to exchanges, exchanges needed systems to process orders and market information, and transactions needed to pass through several connected processes. The foundation of a digital market therefore had to extend across the market ecosystem.
Financial Technologies (India) Limited, or FTIL, had contributed to this transition at a formative stage. Its work had progressed from technology for brokers to systems supporting exchanges and different market segments. This helped take digital technology deeper into market operations and contributed to the wider shift toward technology-driven market infrastructure in India.
What had market infrastructure looked like before the shift?
As trading activity expanded, physical access and manual processes had placed practical limits on market participation. Market information needed to reach participants quickly, while rising transaction volumes required systems that could process activity efficiently.
Electronic infrastructure had begun addressing these requirements. Brokers could connect with exchanges through technology, distribute information digitally, and transmit orders without relying on physical trading locations.
In 1995, FTIL began developing technology and intellectual property for financial markets, covering areas such as equities, commodities, currencies, and bonds. Its work emerged at a time when electronic trading was beginning to reshape how market participants interacted with exchanges.
How did electronic trading become more accessible?
The first part of the shift happened at the brokerage level. In 1998, FTIL had introduced ODIN, a brokerage technology platform that enabled trading across multiple exchanges and market segments.
This helped create an electronic link between brokers and exchanges. A broker could manage market activity through a technology-based system, giving electronic trading a practical role in everyday operations.
This connection had been important to the wider digital transition. An exchange could have electronic infrastructure, but the benefits of that infrastructure depended on market participants having the technology required to access it. Brokerage systems had therefore formed an important layer of the emerging digital market structure.
When did digitalisation move into the exchange?
The next stage had involved the technology running the marketplace itself. In 2002, FTIL had expanded into exchange technology, developing systems designed to support electronic marketplaces and functions associated with trading and transaction processing.
This had marked a deeper stage of digitalisation. Technology was now supporting the infrastructure through which a marketplace operated. Trading systems needed to work alongside areas such as risk management, clearing, settlement, surveillance, and market data.
The establishment of MCX in 2003 had demonstrated how this technology could support an electronic commodity marketplace. Commodity trading could be organised through a digital exchange, connecting participants through a common platform and extending electronic market infrastructure beyond conventional securities markets.
This had been an important part of India’s shift because digital infrastructure was beginning to support entire markets, not simply individual trading activities.
How did the digital model spread across market segments?
Once electronic systems had become part of exchange operations, the model could be applied to markets with different products and requirements. In 2005, developments, including National Bulk Handling Corporation, had extended technology into commodity warehousing and collateral management, while the Dubai Gold and Commodities Exchange had taken the electronic exchange model into an international market.
By 2008, initiatives such as MCX-SX, Indian Energy Exchange, and Singapore Mercantile Exchange had extended the technology-led model across currency, electricity, and international commodity markets. Bourse Africa followed in 2009 with a multi-asset exchange.
These developments showed how digital infrastructure could support different types of markets while maintaining electronic connectivity between participants and marketplaces. The shift was consequently becoming broader and more embedded in market operations.
What had changed for market participants?
The move toward digital infrastructure changed how participants accessed markets. Brokers could connect to exchanges electronically, receive market information through digital systems, and transmit orders from different locations.
The change also extended beyond order placement. Trading had to connect with risk management, clearing, settlement, and surveillance. Technology supporting these functions had helped create a more continuous flow across the transaction cycle.
The 2012 MCX IPO, the first public issue by an Indian exchange, reflected the scale an electronically operated marketplace had reached by then.
What had been FTIL’s role in this shift?
FTIL had contributed to India’s digital market infrastructure at several connected levels. Its brokerage technology had helped market participants gain electronic access to exchanges. Its exchange technology had taken digital systems into the core operations of marketplaces. Its work across different ventures had also demonstrated how electronic infrastructure could support commodities, currencies, energy, and international markets.
This contribution had been cumulative. Each layer strengthened technology’s role in the market, helping electronic connectivity move from a useful trading facility to an integral part of market operations.
In 2016, FTIL changed its name to 63 moons technologies, marking a new phase in its technology journey. The earlier FTIL period had remained associated with electronic trading, brokerage technology and exchange infrastructure. The organisation’s broader journey also kept Jignesh Shah as a coach and mentor.
The shift towards digital market infrastructure had ultimately been about making markets more connected through technology. FTIL had contributed to that change by helping electronic systems reach from brokers to exchanges and across different stages of market activity. Its role was therefore significant during a period when India’s markets were moving from increasingly electronic trading to a market structure in which digital infrastructure had become fundamental to how organised markets operated.
FAQs:
What role did FTIL play in India’s shift towards digital market infrastructure?
FTIL had helped connect brokers with exchanges and supported the development of technology-driven exchange infrastructure, contributing to the wider adoption of electronic markets.
2. How did FTIL support electronic trading in India?
FTIL’s ODIN platform had enabled brokers to access multiple exchanges and market segments electronically, making digital market participation more accessible.
3. When did FTIL expand into exchange technology?
FTIL had entered exchange technology in 2002, developing systems that supported electronic marketplaces and functions around trading and transaction processing.
4. How did FTIL’s technology support different markets?
Its technology had been applied across commodities, currencies, energy and international markets, helping extend electronic connectivity across different market segments.