Singapore Exchange To List Nifty Successor Products From GIFT City Before August

The Singapore Exchange today said it will list successor products to its Nifty family of derivative products before August this year, when its license agreement with National Stock Exchange of India expires.

The Nifty Futures will be launched out of IFSC Gift City in Ahmedabad, the exchange said in a statement.

“This will provide market participants with the same ability to invest and maintain their risk exposure to the Indian capital markets,” it said.

Earlier this month, Indian exchanges, including the NSE, BSE and Metropolitan Stock Exchange of India, had said they would stop the commercial licensing of their indices and market data with a number of foreign exchanges and other business partners.

The SGX has licence agreement with the NSE till August 2018 at a minimum.

Market participants will be able to transition seamlessly to these products before the expiry of SGX's licence agreement with the NSE, the SGX said today.

Details of the successor products and progress on the link will be communicated by March 2018, said the Singapore bourse in the statement.

In the meantime, the SGX Nifty family of products can continue to list, trade, and clear uninterrupted on the SGX until August 2018 at a minimum, supported by the current licence agreement with the NSE.

NSE IFSC Ltd., its GIFT arm, already has futures trading in Nifty Indices and stock futures, according information on its website.

SGX said it is working with NSE to develop a link that will allow market participants to trade on NSE's International Exchange in Gujarat International Finance Tech city while managing their clearing exposures through SGX.

“SGX believes that such a link will increase participation in GIFT and on SGX,” said the statement.

“As a market operator, we have an obligation to our international clients to provide them with solutions to manage their risks,” said Syn.