NSE IFSC-SGX Connect full scale operation targeted for Q2 of 2023

Full-scale operations of the NSE IFSC-SGX Connect are targeted to be ready by the end of the second quarter of 2023, the Singapore Exchange (SGX Group) and the National Stock Exchange announced in a joint statement on Wednesday.

Prime Minister Narendra Modi had launched the NSE IFSC-SGX Connect in July this year in Gift city, following which the work for the transition of trading Nifty contracts on NSE IFSC began.

“The transition of trading of SGX Nifty to NSE IFSC via the Connect is expected to take place shortly thereafter with dollar-denominated Nifty contracts to be exclusively traded on NSE IFSC,” the exchanges stated.

The technological partner, TCS, will deliver an enhanced infrastructure of Connect to support full-scale Nifty trading by early 2023. With the Connect, orders from SGX members will be routed to NSE IFSC for trading and execution while clearing and settlement will be through SGX Derivatives Clearing.

“We shall collaborate with SGX Group and their members to ensure a smooth and seamless transition to NSE IFSC,” said Ashishkumar Chauhan, MD & CEO, NSE.

Currently, 14 SGX Clearing Members have been onboarded for the transition.

Chauhan added that the transition will help consolidate liquidity in Nifty contracts at NSE IFSC in Gift city. Nifty contracts at SGX have been popular amongst foreign investors not willing to register in India.