Chauhan says the Connect will consolidate liquidity pool for Nifty products
The NSE IFSC-SGX Connect is ready to trade and clear Nifty equity derivatives for global institutions, offering unprecedent access to the Indian capital markets.
“The roll out of the Singapore Exchange (SGX Group) and the National Stock Exchange of India (NSE) Connect is a significant milestone for SGX Group and NSE, and it brings us one step closer to combining the growing domestic and international liquidity pools for Nifty products,” SGX Group CEO Loh Boon Chye said on 29 July 2022.
“We are confident that the Connect will be the key platform that connects the world to India, offering global investors unprecedented access to India’s capital markets,” said Loh.
Prime Minister Narendra Modi had formally launched the NSE IFSC-SGX Connect on 29 July 2022.
“This Connect will consolidate the liquidity pool for Nifty products in the NSE IFSC exchange and will facilitate access for global market participants in GIFT City,” added Ashishkumar Chauhan, MD and CEO of NSE.
“Consequently, it will give a boost to the IFSC capital markets eco system and is an important step towards making GIFT City a preferred global destination for capital market activities.
“I take this opportunity to thank the Government of India, IFSC Authority, GIFT City authorities, SEBI, RBI and the government and regulatory authorities in Singapore for their guidance and support to NSE and SGX Group in making the Connect a reality,” he said, calling it a historic day for NSE IFSC as the NSE IFSC-SGX Connect has commenced.
The Connect enables orders from SGX Group’s trading members to be routed to NSE IFSC for trading and execution, with clearing and settlement through NSE IFSC Clearing Corporation Ltd. and SGX Group’s Derivatives Clearing as the central counterparty.
The following members were onboarded on 29 July 2022 and remaining members will be progressively onboarded in the coming months.
The onboarded members are global financial market heavyweights:
Deutsche Bank AG
Morgan Stanley Asia (Singapore) Securities Pte Ltd.
OCBC Securities Private Limited
Orient Futures International (Singapore) Pte. Ltd.
Phillip Nova Pte Ltd
StoneX Financial Pte Ltd
UBS AG.
With India’s economy projected to become the world’s third largest, the NSE IFSC-SGX Connect presents an innovative pathway for international investors to participate in India’s growth story, said a joint release by SGX and NSE.
“Through SGX Group’s unique trading infrastructure in GIFT City, investors in India and around the world can now trade Nifty contracts listed on NSE IFSC seamlessly and efficiently with global risk-management and clearing standards.
“Investors also have real-time access to NSE IFSC market data,” the release said. fiinews.com
