Indian stock exchange to block SGX's new products

SGX previously said that it will launch new derivatives products after Indian bourses halted data licencing.

The Singapore Exchange (SGX) has been notified by the National Stock Exchange of India (NSE) that it has requested the Bombay High Court to block its new products.

It previously said that “work is ongoing” to evaluate a joint trading and clearing model in Gujarat International Finance Tech (GIFT) city with NSE to meet the risk management needs of international participants. This followed the news that India's three stock exchanges will halt the licencing of data for offshore derivatives which are linked to their domestic indices. The SGX has been looking for a workaround ever since.

According to an announcement, SGX has "full confidence" in its legal position and will vigorously defend this action. "Our clients can continue to trade per normal. Our new India derivative products, which have received the relevant regulatory approvals, will list in June 2018 and allow our clients to seamlessly transition their India risk management exposures," it said.

SGX head of derivatives Michael Syn added, “SGX has a responsibility to provide risk management tools for our global clients and ensure there is no disruption to the marketplace. Our new India equity derivative products are essential to enable institutional investors to maintain their current portfolio risk exposure to the Indian capital markets."

He added that they have expressed to NSE that there is a need to maintain liquidity in the international India equity derivatives market, in order to connect international participants to GIFT IFSC. "We remain open to working with NSE and other relevant stakeholders to develop a solution that meets the risk management needs of global market participants."

Also Read

Gazelle Ventures offers to acquire No Signboard shares at $0.0021 apiece

Moomoo, Nasdaq renew global strategic partnership

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit