India's move to stop trading of Indian indices abroad a slap to SGX's face

Singapore

IT is definitely not a nice way for India to treat the Singapore Exchange (SGX), its key host exchange abroad for its derivatives products, which has stood by its side for 18 years, campaigning its hot emerging market story to the international class.

That partnership is now wobbly after India's biggest bourse, the National Stock Exchange of India (NSE), together with two domestic exchanges, made the self-serving decision last Friday to stop the trading of Indian indices in foreign bourses by scrapping agreements and halting data feeds, including that to the SGX.

Barring India coming back to its senses over the demerits of "isolating" its derivatives market, the move has put the SGX, a hub for offshore trading and th…