SGX Nifty to be known as GIFT Nifty from July 3; check details

According to a circular sent by the Singapore Exchange to its trading members in April, the NSE IFSC-SGX Connect at GIFT City, Gandhinagar, will be the sole trading venue for SGX Nifty derivatives till July 3.

“Full-scale operationalization of NSE IFSC-SGX Connect will happen with the transition of SGX Nifty derivatives to NSE IFSC on July 3, 2023. Post transition, all US dollar-denominated Nifty derivative contracts will be traded exclusively on NSE IFSC. said a circular from the Singapore Exchange.

According to SGX, on June 30, 2023, all open positions in SGX Nifty will be automatically transferred to NSE IFSC Nifty as part of the liquidity switch.

The stock market in India starts at 9:15 am every day, while the SGX Nifty, which opens at 6:30 am IST, is used as an early indication of how it might perform.

The development at Gujarat International Finance Tec-City, also known as GIFT City, will allow investors to trade in dollar denominated Nifty futures contracts that are available on SGX.

In addition market participants will also have instant access to NSE IFSC market data. NSE IFSC is an exchange located at IFSC in GIFT City, Gujarat, and is a wholly owned subsidiary of NSE.

Foreign investors who do not want to trade in India often use SGX Nifty contracts. The Singapore Stock Exchange’s revenue came from trading in the Nifty up 10% at its highest level. India’s stock exchanges in early 2018 decided to suspend licensing of their indices in overseas markets until August 2019, amid concerns about a shift in trading activity of foreign traders to Singapore.

SGX Nifty to be delisted, NSE IFSC-SGX Connect to be operational. read here