SGX to launch Nifty options next week

The options contract of the most widely traded Indian index, the S&P CNX Nifty, will make its debut on the Singapore Stock Exchange (SGX) next week. While futures contracts of the Nifty index are traded on SGX and the Chicago Mercantile Exchange, Nifty options will be traded for the first time outside India from Monday.

On the National Stock Exchange, the derivative leader where the Nifty index is listed, its options generate an average daily volumes of 60,000 contracts with an open interest of Rs 1,25,000 crore. The share of stock and index options trading has witnessed a steady rise in the past couple of years and currently form 70 per cent of the total equity derivatives trading volumes in the country.

“The Nifty options add to SGX’s suite of Asian equity derivatives, which include SGX S&P CNX Nifty futures, the dominant Indian product for international participants,” said SGX in a release.