The listing will provide market participants with the same ability to invest and maintain their risk exposure to the Indian capital markets.
New Delhi : A week after India’s leading bourses decided to curb licensing agreements and stop offering live feeds to international exchanges, the Singapore Exchange on Monday said it would list successor products to its flagship Nifty index derivatives before expiry of licence agreement with NSE in August this year.
On February 9, India’s three main exchanges — BSE, NSE and Metropolitan Stock Exchange of India — announced they would stop licensing their indexes to overseas exchanges.
“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 in a statement. Successor products to its SGX Nifty family of products would be listed before August 2018, the bourse said.
This would provide market participants with the same ability to invest and maintain their risk exposure to the Indian capital markets, it added. The domestic bourses’ decision came after SGX launched trading in single-stock futures in 50 of India’s top companies that are part of the Nifty index – a development that has triggered concerns about liquidity moving out of the country. The Singapore bourse also said it would “continue to work with NSE to develop a link” that would allow international market participants to trade on NSE’s International Exchange (NSE IFSC) in Gujarat International Finance Tech (GIFT) city. Michael Syn, Head of Derivatives, SGX, said it continues to work with NSE to create a larger pool of liquidity.