NSE-SGX to work on NSE IFSC-SGX Connect
Major international capital market participants are set to boost trading at the Gujarat International Finance Tec-City (GIFT) which has formalized an agreement to cement key terms for operationalising the NSE IFSC-SGX Connect with the Singapore Exchange (SGX).
NSE and SGX entered into the formal agreement on 22 Sept 2020 with the aim to bring together international and local participants to create a bigger liquidity pool for Nifty products in GIFT City.
Both NSE and SGX will also withdraw the arbitration proceedings.
The two exchanges have recently received further regulatory clarifications from the relevant authorities on the implementation of the Connect, since receiving consent from their respective statutory regulators on the proposed Connect model last year.
Both parties will continue to work with key stakeholders to develop the infrastructure for the Connect and ensure member readiness prior to its implementation, said the two exchanges in a joint statement.
“Building connectivity across international platforms in Singapore and India will facilitate unfettered access for global market participants, and in turn enhance investments and capital market flows between India and the world,” SGX CEO Loh Boon Chye said on announcing the agreement.
As Asia’s pioneering central counterparty, SGX will work with NSE and stakeholders to develop a connectivity infrastructure that incorporates international best practices and creates new value for existing and new customers, he assured.
“We deeply appreciate the continued support provided by the government and regulatory authorities in India and Singapore.
“We look forward to broadening participation and deepening liquidity in Nifty products for international participants, as part of the growth of GIFT City,” said Loh.
“This Connect is one of the key developments for the integration of GIFT City ecosystem with the international financial markets,” said Vikram Limaye, Managing Director and Chief Executive Officer of NSE.
It would lead to the development of vibrant and liquid markets for India access products at GIFT City with the ease of access to international investors.
“Our collaboration with SGX is an important step towards fulfilling the vision of Atmanirbhar Bharat as envisaged by our Prime Minister of India with GIFT IFSC playing a much larger role in the global financial markets,” stressed Limaye.
“The connect will broaden the international and domestic participant base and further strengthen the capital market ecosystem in GIFT city resulting in more broad-based development across asset classes and capital raising activity,” he said.
“We are happy to welcome the NSE IFSC–SGX Connect to GIFT City, which would bring together the trading in NIFTY products, thus creating a large unified pool of liquidity,” elaborated GIFT CITY MD and Group CEO Tapan Ray.
“This would bring all major international capital market participants into GIFT City, leading to the development of a global market ecosystem,” he said. #exchanges #indices #trading #prices #shares /fiinews.com
