PM Modi To Launch SGX Nifty Trading At GIFT City On July 29
Prime Minister Narendra Modi will launch the NSE's derivative contracts for Singapore investors through GIFT City on July 29.
Prime Minister Narendra Modi will launch the National Stock Exchange's derivative contracts for Singapore investors through the GIFT City in Ahmedabad, Gujarat on July 29.
SGX Nifty derivatives via the International Financial Services Centre or IFSC were earlier scheduled to start on July 15 but the launch was deferred due to weather conditions and floods in Gujarat.
The July 29 launch will coincide with the new contracts. The monthly future and options contracts expire on the last Thursday of the month.
The launch will shift offshore Nifty derivatives from the Singapore Exchange to NSE IFSC. It will also mark the official beginning of the connection between the National Stock Exchange and the Singapore bourse through GIFT City.
The SGX has incorporated a special purpose vehicle—the SGX India Connect IFSC Pvt.—for the arrangement.
Once it goes live, orders for the Nifty-based derivatives contracts from trading members based in Singapore will be routed via SGX-ICI to NSE IFSC for trading and execution.
The trades will be subsequently cleared and settled through NSE IFSC Clearing Corp. Ltd., with SGX-Derivatives Clearing as the central counterparty.
The trading link will offer futures and options for benchmark Nifty 50 Index, Nifty Bank Index, Nifty IT Index and Nifty Financial Services Index. All F&O contracts will be listed on NSE IFSC.
The connect was necessitated after Indian bourses decided to stop providing pricing data to SGX to protect derivative volumes from moving offshore. The exchanges later agreed to route trading through the International Financial Services Centre in GIFT City.
The connect started testing negotiated large trades in May. Volumes and value began inching up since mid-May, with the total value of trades at $25 billion last month. That's about a quarter of the trading volume of Nifty products on SGX.
Trading Hours
The connect will operate in two sessions—from 8 a.m. till 5 p.m. India Standard Time; and from 5:02 p.m. till 2:45 a.m. IST—in line with the trading hours of U.S. markets.