SGX to launch new products to succeed Nifty derivatives by August

The Singapore Exchange (SGX) announced today that it will list successor products to its SGX Nifty family of products before August 2018, when its license agreement with Indian bourses expires.

The Nifty Futures will be launched out of IFSC Gift City in Ahmedabad
The Nifty Futures will be launched out of IFSC Gift City in Ahmedabad. Photo courtesy: Twitter/@NSEIndia

​SGX said it is working with NSE to develop a link that will allow market participants to trade on NSE's International Exchange in Gujarat International Finance Tech (GIFT) city while managing their clearing exposures through SGX.

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

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.

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.

NSE IFSC Ltd, its GIFT arm, already has futures trading in Nifty Indices and stock futures, according information on its website.

“As a market operator, we have an obligation to our international clients to provide them with solutions to manage their risks. 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, Head of Derivatives, SGX.

As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.