SGX to list new India equity derivative products in June

The Singapore Exchange today said it will list new India equity derivative products in June this year.

The announcement comes after leading stock exchanges - BSE, NSE and Metropolitan Stock Exchange of India - on February 9, decided to curb all licensing agreements and stop offering live prices to international bourses.

"SGX will list new India equity derivative products in June 2018, to provide market participants with continuity and the ability to seamlessly transition their current India risk management exposures," Singapore Exchange said in a statement.

The statement further said, "these products also add to the existing India Single Stock Futures offering, which has garnered active participation from global institutional clients since its launch, demonstrating the demand for access products".

Recently, global index provider MSCI termed the move by Indian stock exchanges to restrict derivatives trading and data feeds overseas anti-competitive, and said such a move could lead to unnecessary disruption.

The Singapore Exchange further said it is working with Indian counterpart NSE to evaluate a joint trading and clearing model in Gujarat International Finance Tech (GIFT) City.

"While implementation is not feasible before expiry of the licence agreement with NSE, SGX remains committed to engagements with NSE and other relevant stakeholders in India towards a collaboration in GIFT city," the statement noted.

Michael Syn, Head of Derivatives at SGX further noted that SGX has worked hard over the past two decades to promote the development and internationalisation of India's capital markets.

"We are still exploring a solution that would bring the liquid international market directly into GIFT City, in a way that meets our clients' regulatory requirements while growing the overall market. In the meantime, we will continue with our new India equity derivative products, which international portfolio investors need to maintain for exposure to India," Syn said.