NSE IFSC-SGX Connect Full Operations Targeted From Second Quarter Of 2023

The new platform will allow investors to trade in dollar-denominated Nifty futures contracts available on the Singapore Exchange.

<div class="paragraphs"><p>(Source: Reuters)</p></div>
(Source: Reuters)

National Stock Exchange (NSE) and Singapore Exchange on Wednesday said that the full scale operation of the NSE IFSC-SGX Connect has been targeted by the end of second quarter of 2023.

The new platform would enable investors worldwide to trade in dollar-denominated Nifty futures contracts available on the Singapore Exchange in GIFT City. Also, investors would have real-time access to NSE IFSC market data.

"The full scale operation of the NSE IFSC-SGX Connect is targeted to be ready by the end of the second quarter of 2023," a statement said.

The transition of trading of SGX Nifty to NSE IFSC through Connect is expected to take place shortly thereafter with dollar-denominated Nifty contracts to be exclusively traded on NSE IFSC, according to the statement.

SGX Group and NSE launched Connect in July this year. Since then, both exchanges have been working closely with technology partner, TCS, and SGX members to transition the trading of Nifty contracts to NSE IFSC.

NSE IFSC, a wholly-owned subsidiary of NSE, is an exchange in GIFT City.

Connect enables orders from SGX members to be routed to NSE IFSC for trading and execution with clearing and settlement through SGX Derivatives Clearing.

"An enhanced Connect infrastructure to support full scale Nifty trading via the Connect is expected to be delivered by TCS in early 2023," the statement noted.

Till date, 14 SGX Clearing Members have been onboarded and the work will continue to onboard remaining members.

SGX Group and NSE will engage the trading community to ensure a smooth transition.

"This shall be a key milestone in our partnership of more than 22 years with SGX Group to consolidate liquidity in Nifty contracts at NSE IFSC in Gift City. We shall collaborate with SGX Group and their members to ensure a smooth and seamless transition to NSE IFSC," Ashishkumar Chauhan, MD and CEO of NSE, said.

Loh Boon Chye, CEO of SGX Group, said, this will be a landmark occasion and the exchange looks forward to creating greater connectivity for investors globally.