NSE-SGX Gift City connect could go live around Vibrant Gujarat next Jan

The proposed trading link between Singapore Exchange (SGX) and the National Stock Exchange (NSE) at the GIFT City IFSC could become operational early next year.

Known as NSE-SGX Gift Connect, it will enable the Singapore bourse’s clients to trade in Nifty derivatives at the NSE IFSC. Nifty derivatives contracts are among the most traded on the SGX. They are used by global investors to hedge their India exposure.

“We look forward to full-fledged operation of the NSE IFSC-SGX connect at GIFT city around the Vibrant Gujarat Summit likely to be held in January 2022,” said Tapan Ray, managing director and group chief executive officer, GIFT City.

He was speaking at an event organised to mark the inauguration of SGX’s office at GIFT City, which will also house a data centre — Market Data Connect.

GIFT CONNECTION

• Known as NSE-SGX Gift Connect, it will enable the Singapore bourse’s clients to trade in Nifty derivatives at the NSE IFSC
• Nifty derivatives contracts are among the most traded on the SGX
• The NSE-SGX GIFT City connect has been in the works for many years now

“With this further progress, which we have made by setting up this subsidiary of SGX in GIFT IFSC and also opening up of GIFT Data connect, we should be able to operationalise and commence by the year end,” said Injeti Srinivas, chairman, IFSC Authority. The NSE-SGX GIFT City connect has been in the works for many years now. It was proposed after Indian bourses decided to end licensing agreements with their foreign counterparts in 2018.

“The launch of the Market Data Connect brings us one step closer towards operationalising the NSE IFSC -SGX connect at GIFT IFSC. This will allow the SGX members to read the price data of Nifty derivative products at NSE IFSC in real time, which will help them to fine tune their trading strategies in preparation for the connect to go live,” said Vikram Limaye, MD and CEO, NSE. Loh Boon Chye, CEO, SGX, added: “The GIFT Data Connect enables SGX’s international members to access real-time trading data of Nifty contracts via our derivatives trading platform, giving investors unrivalled insights into India’s equity market.”