Singapore to trade Nifty Options in Q2

The Singapore Exchange (SGX) will start trading a second Nifty contract in May or June, offering regional hedge funds and investors another option to benefit from high-return investments in India, Sanjay Rawal, the CEO of New Delhi-based Open Futures, told PTI in Singapore last night.

"It is a good product and it will offer investment opportunities in the Indian market to regional hedge funds and global investment institutions," said Rawal after addressing a late evening seminar on SGX S&P CNX Nifty Index Options at the SGX.

The Nifty Options is currently in the process of securing regulatory approval from the Monetary Authority of Singapore, the city state's central bank.

Rawal said a May or June listing date was expected once the regulators have given approval.

He expected strong demand for Nifty Options, citing the highly-rated performance of Nifty Futures, which began trading on the SGX in 2005.

Elaborating on Nifty Options prospects, SGX Director for Product Sales Dominic Che said he expected to build Nifty Options trade volume to 60,000 lots per day, given that Nifty Futures have drawn strong interest from international investors.

Going forward, Che projected a Nifty Options volume of 80,000 lots, matching regional heavyweights like Hong Kong's Hang Seng Index, rated as the region’s largest contract with a daily volume of 80,000 lots.

Nifty Futures has performed well and is rated as the third largest of its kind contract on the Singapore bourse, with a daily volume of 48,000 lots.