The reported breakdown in talks highlights nervousness in some quarters about protecting existing market positions.

Stock exchanges in Singapore and India have scrapped talks over forging a cross-border trading link, adding to a tortuous relationship in recent months, according to the Straits Times (of Singapore).

The news article said The Singapore ExchangeandNational Stock Exchange of India abandoned the talks as they could not reach a deal on issues such as timing and regulatory guidelines.

Had it been approved, traders in Singapore would have bought and sold derivatives on exchanges in the Gujarat tax-free zone known as Gift City. Officials from NSE and SGX declined to comment, the report said.

Talks became acrimonious last week when NSE sued to stop the SGX from launching derivatives based on Indian stocks next month. The dispute threatens an alliance that began in 2000. So far, Nifty 50 Index futures have stopped trading in Singapore, creating a headache for international investors trying to manage exposures to such large Indian stocks.

Such a dispute highlights the tough competition between bourses across Asia, as exchanges jostle to protect their liquidity, win more initial public offerings and compete against upstarts. Singapore has been keeping a wary eye on Hong Kong’s equities markets, as they have forged cross-border 'connect' trading links with mainland China.

This publication reported in April on the stated move by SGX to list Indian derivative products in June.