 "A Singapore Exchange (SGX) sign sits outside its premises at the central business district in Singapore")
At present, the futures contracts on the Nifty 50 index are widely traded on the Singapore Exchange.
Four sectoral indices of the NSE — Bank Nifty, Nifty IT, Nifty Midcap 50 and Nifty CPSE index — will soon start trading on the Singapore Exchange (SGX). This is the first time that derivatives on Indian sector indices are being launched outside India.
“The introduction of sector index futures contracts will deepen SGX’s Indian product offering and will provide offshore investors access to specific trading opportunities in the key growth sectors of the world’s fastest growing economy,” NSE said in a release.
At present, the futures contracts on the Nifty 50 index are widely traded on the SGX. According to NSE, turnover of NSE futures contract stood at $360 billion in 2015, up 30 per cent from the previous year. Rupee-dollar futures contracts too are traded on SGX with daily notional turnover of around $750 million.
“The continued success of our existing India-linked risk management products is testament to offshore demand from investors to access the India opportunity as well as SGX’s ability to pioneer offshore derivative contracts,” said Loh Boon Chye, chief executive officer, SGX.
