The Singapore Exchange (SGX) will list successor products to its Nifty family of derivative products before August, the market operator announced yesterday.
The SGX, which has been scrambling to save its Indian equity index derivatives business ever since Indian stock exchanges said earlier in the month that they would no longer provide data for offshore derivatives, said the roll-out of the replacement products would provide market participants with the same ability to invest in and maintain their risk exposure to the Indian capital markets.
"Market participants will be able to transition seamlessly to these products before the expiry of SGX's licence agreement with the National Stock Exchange of India (NSE)," said the SGX in a statement.
Meanwhile, the SGX Nifty family of products can continue to be listed, traded and cleared without interruption on the SGX until August at a minimum, as supported by the current licence agreement with NSE.
The SGX also said it would continue to work with the NSE to develop a link that would allow international market participants to trade on the NSE's International Exchange at the Gujarat International Finance Tec-City (Gift) - International Financial Services Centre. It believes that such a link would increase participation in Gift and on the SGX.
Details of the successor products and progress on the link will be announced by next month.
"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," said SGX head of derivatives Michael Syn. "At the same time, we continue to work with NSE to create a larger pool of liquidity comprising international and home market participants."
India's three main stock exchanges - the NSE, Bombay Stock Exchange and Metropolitan Stock Exchange of India - said on Feb 9 that they would cease licensing their indexes and securities or providing data to foreign exchanges in a bid to prevent trading volumes from leaking overseas.
The SGX, which offers the popular SGX Nifty 50 Index futures, was among some 10 exchanges affected by the move.
