SGX to list new Nifty index products before August

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Singapore Stock Exchange today said it would list successor products to its Nifty index derivatives before expiry of licence agreement with NSE in August this year. The announcement comes more than a week after leading bourses - BSE, NSE and Metropolitan Stock Exchange of India - decided to curb all licensing agreements and stop offering live prices to international exchanges. "The SGX Nifty family of products can continue to list, trade and clear uninterrupted on SGX until August 2018 at a minimum, supported by the current licence agreement with NSE," the Singapore bourse said in a statement. According to the bourse, successor products to its SGX Nifty family of products would be listed before August 2018.

This would provide market participants with the same ability to invest and maintain their risk exposure to the Indian capital markets, it added. The domestic bourses' decision, which was announced on February 9, came after SGX launched trading in single-stock futures in 50 of India's top companies that are part of the Nifty index - a development that has triggered concerns about liquidity moving out of the country.
In today's statement, the Singapore bourse also said it would "continue to work with NSE to develop a link" that would allow international market participants to trade on NSEs International Exchange (NSE IFSC Limited) in Gujarat International Finance Tech (GIFT) city. Michael Syn, Head of Derivatives, SGX said it continues to work with NSE to create a larger pool of liquidity comprising international and home market participants. While noting that clearing exposures would be managed through it, SGX said such a link would increase participation in GIFT as well as on the exchange. "As a market operator, we have an obligation to our international clients to provide them with solutions to manage their risks. Our successor products will provide certainty and continuity for our clients," Syn said. Last week, global index provider MSCI had termed the move by Indian stock exchanges to restrict derivatives trading and data feeds overseas as anti-competitive.