A man rides an escalator past an electronic screen at the Singapore Exchange Ltd. (SGX) headquarters in Singapore. (Photographer: Nicky Loh/Bloomberg)

SGX To Migrate All Nifty Positions To New Indian Derivatives From June 4

The Singapore Exchange on June 4 will migrate all Nifty and Bank Nifty positions of its clients to new contracts that will be settled every month on publicly available information after the National Stock Exchange decided to stop sharing data with it.

Participants who don’t wish to be part of this migration should close out their positions before June 1, SGX said in a communication to its clients. The exchange had earlier announced the launch of three new contracts on Nifty SGX India Futures, SGX Options on SGX India Futures and SGX India Bank Futures.

The new contracts stem from the decision by the National Stock Exchange, the Bombay Stock Exchange and another bourse to halt providing data to foreign exchanges to prevent trading volumes from moving offshore. That came immediately after SGX decided to offer single-stock futures of Nifty 50 stocks, contracts largely used by foreign investors to hedge positions. The Singapore exchange had assured its clients of a seamless transfer to new contracts.

All outstanding open positions as at the end June 1 in Nifty Futures, Nifty Options and Nifty Bank contracts will be migrated to the new India Futures, India Options and India Bank contracts, respectively, SGX said. “Any participant who continues to maintain open positions in the Nifty contracts at close of T-session trading on June 1 will be deemed to have agreed to the migration of such positions to the new SGX India contracts.”

The existing contracts will be delisted from June 4. The exchange will offer two simulation exercises on April 30-May 4 and May 14-18.

SGX will also make three Nifty contracts—SGX Nifty IT Index Futures, SGX Nifty CPSE Index Futures and SGX Nifty Midcap 50 Index Futures — dormant from May 7 in the absence of trading interest in these contracts.

The Singapore exchange will also remove Nifty Futures as designated contracts for its mutual offset system with the Chicago Mercantile Exchange effective June 4. The facility, largely used to manage overnight risks, will be available only for the April and May contracts, SGX said. It allows traders to open position in one exchange and liquidate in another. SGX offered E-mini Nifty 50 Index Futures as part of the programme.

Also Read: India's Attack on Offshore Markets Clobbers SGX, Risks MSCI Ire

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