SGX eyes NSE collaboration in Gujarat

It will also list new India equity derivative products in June.

For the Singapore Exchange (SGX), “work is ongoing” to evaluate a joint trading and clearing model in Gujarat International Finance Tech (GIFT) city with National Stock Exchange of India (NSE) to meet the risk management needs of international participants.

“Whilst implementation is not feasible before the expiry of the licence agreement with NSE, SGX remains committed to engagements with NSE and other relevant stakeholders in India towards a collaboration in GIFT city,” the exchange announced.

This followed the decision of India’s three main stock exchanges – NSE, Bombay Stock Exchange (BSE), and the Metropolitan Stock Exchange of India (MSEI) – to stop the licencing of data for offshore derivatives linked to their domestic indices.

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 derivatives head Michael Syn said, “SGX has worked hard over the past two decades to promote the development and internationalisation of India’s capital markets. We are still exploring a solution that would bring the liquid international market directly into GIFT city, in a way that meets our clients’ regulatory requirements whilst growing the overall market. In the meantime, we will continue with our new India equity derivative products, which international portfolio investors need to maintain exposure to India.”

Meanwhile, SGX will list new India equity derivative products in June 2018. “These products also add to the existing India Single Stock Futures offering, which has garnered active participation from global institutional clients since its launch, demonstrating the demand for access products,” it added.