S&P 500 futures to be traded in India, Nifty in US

In a major development that will allow Indian investors access to the American market, the country’s top bourse the National Stock Exchange (NSE) has decided to begin trading in futures contracts of Dow Jones Industrial Average (DJIA) and S&P 500 - the two key indices of the US market.

At the same time, Nifty - NSE’s benchmark index comprising India’s 50 top blue-chip stocks - would be traded on the Chicago Mercantile Exchange (CME) of the US.

The listing and trading arrangement for these indices, which are subject to regulatory approvals in India and the US, was announced by the NSE and CME in a joint statement.

Besides the cross-listing and licencing agreements, the two bourses have also entered into a “Memorandum of Understanding with respect to other areas of potential co-operation including related to development and distribution of financial products and services”.

NSE’s affiliate India Index Services and Products (IISL) has granted exclusive licence for the US and Europe to CME Group for trading of Nifty 50.

Besides, NSE also announced an agreement to explore listing and trading of more India-linked products on Singapore Exchange, which already has a licence to trade in Nifty 50.