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SGX to roll out Nifty successor products before August

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Share prices in the Singapore bourse closed lower on Friday, with the key Straits Times Index down 67.57 points or 1.94 per cent to finish at 3,423.8.

THE SINGAPORE Exchange (SGX) will list successor products to its Nifty family of derivative products before August 2018, the market operator announced before Monday's trading hours.

SGX, which has been scrambling to save its Indian equity index derivatives business ever since Indian stock exchanges said earlier in the month that they will no longer provide data for offshore derivative, said that the roll-out of the replacement products will provide market participants the same ability to invest and maintain their risk exposure to the Indian capital markets.

"Market participants will be able to transition seamlessly to these products before the expiry of SGX's licence agreement with the National Stock Exchange of India (NSE)," SGX said in a statement.

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

SGX also said that it will continue to work with NSE to develop a link that will allow international market participants to trade on NSE's International Exchange (NSE IFSC Limited) in Gujarat International Finance Tech (GIFT) city - International Financial Services Centre, while managing their clearing exposures through SGX. It believes that such a link will increase participation in GIFT and on SGX.

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Details of the successor products and progress on the link will be announced by March 2018.

"As a market operator, we have an obligation to our international clients to provide them with solutions to manage their risks. Our successor products will provide certainty and continuity for our clients. At the same time, we continue to work with NSE to create a larger pool of liquidity comprising international and home market participants," said Michael Syn, Head of Derivatives, SGX.

India's three main stock exchanges - NSE, the Bombay Stock Exchange (BSE), and the Metropolitan Stock Exchange of India (MSEI) - said on Feb 9 that they will stop their securities or sharing data with foreign exchanges in a bid to prevent trading volumes from leaking overseas.

SGX, which offers the popular SGX Nifty 50 Index futures, was among about 10 exchanges affected by the move.

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