NSE-Singapore Exchange Trading Link Set To Go Live Early Next Year
The National Stock Exchange of India Ltd.'s Singapore trading link through the international financial services centre in Gujarat will begin early next year.
The NSE IFSC-SGX has opened its office at the GIFT City in Ahmedabad with the launch of the market-data connect between the two financial centres, NSE IFSC said in a statement.
It will start disseminating data from NSE IFSC starting Nov. 1, Singapore Exchange Ltd. said in a statement.
All SGX members will get price data of Nifty derivatives at NSE IFSC in real time. The connect is likely to go live early January around Vibrant Gujarat, according to the statements.
The trading link will provide front-month data including open, high, low, last close and net change for three key products:
NSE IFSC Nifty 50 Index Futures
NSE IFSC Nifty Bank Index futures
NSE IFSC Nifty IT Index futures
The SGX has set up its special purpose vehicles at GIFT City and the exchanges are working to take the connect live ahead of schedule. Earlier, the software and hardware were expected to be in place by the end of the year and testing was scheduled to start in the January-March quarter.
Once the link is live, contracts mirroring Nifty products traded in Singapore will be transferred to the NSE IFSC platform in a staggered manner. Investors registered with the NSE IFSC will be allowed to trade in the SGX products. The Indian bourse already offers a Nifty dollar-based contract in GIFT City. The trading link includes two clearing corporations—one each in GIFT City and in Singapore.
The contracts will be settled in India and transferred to the SGX, allowing foreign investors to cross or transfer margins between accounts on the SGX platforms after squaring off positions. India will grandfather or exempt Singapore-registered clients from the KYC requirement and the two regulators have agreed to share information.
The agreement between the NSE and the SGX had paved the way to withdraw arbitration proceedings initiated after India’s largest bourse, along with domestic peers, in 2018 stopped sharing pricing data to protect index futures from shifting offshore.