IFSCA exchanges MoUs with Singapore, Luxembourg, Qatar and Sweden
Prime Minister Narendra Modi has launched NSE IFSC-SGX Connect, allowing all orders for NIFTY derivatives placed by members of Singapore Exchange Limited (SGX) to be routed to and matched on the NSE-IFSC order matching and trading platform.
The Connect will deepen liquidity in derivative markets at GIFT-IFSC, bringing in more international participants and creating positive impact on the financial ecosystem.
Currently, the average daily volume in NIFTY Futures at SGX is 1.09 lakh contracts valued worth approximately S$3.65 billion.
This volume is expected to move to NSE-IFSC once the Connect is fully implemented, pursuant to a transition period of 4-5 months.
Broker-Dealers from India and across international jurisdictions are expected trade derivatives through the Connect in large numbers, the Finance Ministry said on 30 July 2022 in a release.
Meanwhile, the International Financial Services Centres Authority (IFSCA), established by the Government to develop and regulate international financial services centres in the country, has exchanged MoUs with foreign regulatory authorities and Department of Space.
The MoUs were exchanged by IFSCA with Monetary Authority of Singapore; Commission de Surveillance du Secteur Financier, Luxembourg; Qatar Financial Centre Authority and Finansinspektionen, Sweden.
The MoUs will promote greater collaboration and partnerships between IFSCA and these regulatory authorities through, inter alia, exchange of information, sharing of best practices and capacity building, said the Ministry.
Further, IFSCA also exchanged a MoU with the Department of Space (DoS) to unlock the enormous opportunity of convergence between FinTech and SpaceTech.
IFSCA has enabled a regulatory framework for entities working in the areas of SpaceTech to be authorised as FinTech Entities under IFSCA.
The MoU will enable IFSCA to leverage the technical expertise of DoS for evaluating applications of SpaceTech entities while also facilitating the access of space-related datasets of DoS to these entities for testing of their models.
Other important milestones announced during the occasion included:
Setting up of Indian Regional Office (IRO) by New Development Bank (NDB),
Inauguration of International Banking Units (IBUs) of three Foreign Banks,
Expansion of capacity of Global In-house Centre (GIC) of Bank of America,
Operationalisation of four International Trade Finance Services (ITFS) Platforms,
Grant of Authorisation Certificates to five FinTech firms in GIFT-IFSC,
Submission of a joint letter of intent by Association of National Exchanges Members of India (ANMI) and Commodity Participants Association of India (CPAI) on behalf of 100+ Broker-Dealers for setting up operations in GIFT-IFSC,
75th listing of bonds on India INX in celebration of Azadi ka Amrit Mahotsav, and
Launch of International Sustainability Platform (ISX). fiinews.com
