Fresh Nifty derivative products to make way by August: Singapore Exchange

Fresh Nifty derivative products to make way by August: Singapore ExchangeSingapore Exchange (SGX) on Monday said it will list successor products to its Nifty family of derivative products before August 2018, when its license agreement with National Stock Exchange (NSE) of India expires.

"This will provide market participants with the same ability to invest and maintain their risk exposure to the Indian capital markets," said SGX in a statement.

Earlier this month, Indian exchanges, including the NSE, Bombay Stock Exchange (BSE) and Metropolitan Stock Exchange of India (MSEI), had said they would stop the commercial licensing of their indices and market data with a number of foreign exchanges and other business partners.

The SGX has licence agreement with the NSE till August 2018 at a minimum.

ALSO READ: Should BSE, NSE rethink ban on SGX Nifty? MSCI 'strongly suggests' so

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

"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, SGX's Head of Derivatives in the statement.

Details of the successor products and progress on the link will be communicated by March 2018, said the Singapore bourse in the statement.

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

ALSO READ: 10 years of Reliance Power listing: How Rs 10,000 turned Rs 1,600

The SGX will continue to work with the 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 the 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 Syn.