Singapore to replace SGX Nifty products

Singapore Exchange (SGX) said details of successor products, replacing its SGX Nifty family of products, will be communicated by March 2018.

The new products will provide market participants with the same ability to invest and maintain their risk exposure to the Indian capital markets as it has been with the current range of products, said SGX in a statement on 19 Feb 2018.

The new products are being worked out as SGX’s license agreement expires with National Stock Exchange (NSE) of India.

Details of the successor products and progress on the link will be communicated by March 2018, said SGX.

NSE, Bombay Stock Exchange (BSE) and Metropolitan Stock Exchange of India (MSEI) had issued a joint statement on 9 February 2018, announcing the half of commercial licensing of their indices and market data with a number of foreign exchanges and other business partners.

Market participants will be able to transition seamlessly to these products before the expiry of SGX’s licence agreement with the NSE, assured SGX.

In the meantime, 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, the Singapore bourse said.

Concurrently, SGX 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.

“SGX believes that such a link will increase participation in GIFT and on SGX,” said the statement.

“As a market operator, we have an obligation to our international clients to provide them with solutions to manage their risks,” said Michael Syn, SGX’s Head of Derivatives in the statement.

“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,” Syn said. fii-news.com