Singapore Exchange (Image Source: Pixabay)
All orders from the Singapore Exchange (SGX) will be transferred to the NSE IFSC-SGX Connect at the International Financial Service Center (IFSC) in GIFT City, effective from July 3, according to a spokesperson from the National Stock Exchange. As part of this transition, the SGX Nifty will be renamed as GIFT Nifty.
The NSE IFSC is a wholly owned subsidiary of the NSE and has established an international exchange within the Gujarat International Finance Tech City, which is recognized as an International Financial Service Centre. This move will enable investors to trade in dollar-denominated Nifty futures contracts available on the SGX within GIFT City, while also providing them with real-time access to NSE IFSC market data.
As per the officials, on June 30, 2023, all open positions in the SGX Nifty will automatically shift to the NSE IFSC Nifty as part of the liquidity switch. This transition follows the launch of the NSE IFSC-SGX Connect in July 2022, which is a joint venture between the NSE and the SGX aimed at trading and clearing Nifty equity derivatives for global institutions.
To facilitate the transition for SGX members to trade on the NSE IFSC-SGX Connect, a liquidity switch will be performed after the close of business on June 30 for certain futures contracts. This switch is expected to be completed by July 3.
In April, the SGX had issued a circular to its trading members stating that the NSE IFSC-SGX Connect at GIFT City would be the sole trading location for SGX Nifty derivatives starting...