Securities Financial Derivatives News | Indian and Singapore exchanges are expanding derivatives trading connectivity via the Connect platform

Indian and Singapore exchanges are expanding derivatives trading connectivity via the Connect platform

The National Stock Exchange of India (NSE) and Singapore Exchange (SGX) have established a platform for trading and clearing of Nifty equity derivative contracts for global institutions.

The NSE ISFC-SGX Connect platform will allow Singapore Stock Exchange trading member orders to be routed to NSE IFSC for execution, with post-trade requirements handled by NSE IFSC Clearing Corporation and SGX Group’s Derivatives Clearing as central counterparty.

The two exchanges state that NSE ISFC-SGX Connect offers an innovative way through which international investors can gain exposure to India’s growth, with SGX Group’s trading infrastructure in Gujarat International Finance (GIFT) City enabling global investors to trade Nifty -Derivatives contacts listed on the NSE IFSC, backed by global standards for risk management and clearing.

This solution provides international investors with real-time access to NSE IFSC market data to support their trading activities.

Launched on July 29, the first onboarding phase will integrate seven SGX trading members, namely Deutsche Bank, Morgan Stanley Asia (Singapore) Securities, OCBC Securities, Orient Futures International (Singapore), Philip Nova, StoneX Financial and UBS.

Additional trading participants will be gradually integrated into the new platform in later phases.

Ashishkumar Chauhan, Managing Director and CEO of NSE, said: “Today is a historic day for NSE IFSC with the release of NSE IFSC-SGX. This connection will consolidate the liquidity pool for Nifty products on the NSE IFSC exchange and facilitate access for global market participants in GIFT City.

“Consequently, it will provide a boost to the IFSC capital markets ecosystem and is an important step in making GIFT City a preferred global destination for capital markets activities.”

Loh Boon Chye, CEO of SGX Group, said: “The launch of Connect is a significant milestone for SGX Group and NSE and brings us one step closer to combining the growing domestic and international liquidity pools for Nifty products.

“We are confident that Connect will be the key platform connecting the world to India and providing global investors with unprecedented access to India’s capital markets.”

NSE IFSC, a wholly owned subsidiary of NSE, was incorporated on June 5, 2017 and supports trading in Indian and global equity, index and currency derivatives as well as depositary receipts and non-agricultural commodity derivatives.

This also enables trading in a wide range of products traded on exchanges in FATF/IOSCO compliant jurisdictions including equities listed outside of India, debt securities, interest rate derivatives and a range of exchange traded products.

NSE IFSC states that it is the only exchange in GIFT City that has a Part 30 exemption from the Commodities Futures Trading Commission (CFTC).

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