Trade Nifty in US, offset position in Asia

Traders betting on S&P CNX Nifty futures will now be able to take positions in the US and offset it in Asia and vice-versa. They will also be able to exploit arbitrage opportunity in the Index, if and when it exists. This will be possible as the Singapore Stock Exchange (SGX) and the Chicago Mercantile Exchange (CME) will extend their mutual offset arrangement to include Nifty futures.

Nifty is India’s key equity benchmark index and a product of the National Stock Exchange’s (NSE). It covers overs 23 sectors of the economy and over 60 per cent of the total market capitalisation of the underlying bourse, NSE.

Nifty is one of the most successful traded product on SGX outside India and it will started trading on CME from July 19. SGX and CME’s mutual offset arrangement has been in place since 1984 and covers the Singapore bourse’s Eurodollar, European, and yen- and dollar-denominated Nikkei 225 futures contracts. Trading of Nifty on CME will increase bets on the Indian markets. As per SGX data the Nifty recorded a growth of 44 per cent during this June compared to last year corresponding month. On SGX over 8,00,000 contracts of Nifty were traded.