SGX set to list new India equity derivative products

Traders bemoaning the possible demise of the popular Nifty-linked offerings will be given fresh alternatives in June.

The Singapore Exchange (SGX) said yesterday it is set to list new India equity derivative products, although no details were given.

India's stock exchanges rolled out plans earlier this year to stop supporting offshore derivatives linked to their benchmark indices. The move could leave the market here high and dry by August, when the six-month termination notice period runs out on the SGX's licensing agreement.

Given the situation, the new derivatives will "provide market participants with continuity and the ability to seamlessly transition their current India risk management exposures", the SGX said.

These products are not tied to the Nifty licence deal with its Indian counterpart, the National Stock Exchange of India (NSE). They will sit alongside the India single-stock futures offerings that were launched on the Singapore market on Feb 5.

The SGX added that it is still working with the NSE to evaluate a joint trading and clearing model in Gujarat International Finance Tec-City (Gift City), a hub in Gujarat state.

But it said it is "not feasible" for such an arrangement to kick in before the licence agreement expires.- THE STRAITS TIMES