SGX Group is delighted to mark a significant milestone in our partnership with the National Stock Exchange of India as we make history with the successful transition of the SGX Nifty futures contracts to GIFT Nifty.
For over two decades, SGX has been working with NSE to internationalise the Nifty benchmark. Hence, we were very excited to see the continued strong demand and interest from global investors, as we opened the market with $8 billion of open interest in GIFT Nifty.
As a leading international multi-asset exchange, SGX has played a pivotal role in transforming Singapore into a global financial hub. We have built a reputation for our innovation, robust infrastructure, investor-friendly regulations, and market integrity. Today, we have taken another bold step forward in our commitment to serve our international customers with unparalleled access to Asia. This first-of-its-kind trading link – with trading and matching in India and clearing and settlement in Singapore – has never been done before in the derivatives world, and is likely the first cross-border capital markets collaboration between Singapore and India.
India’s remarkable economic growth and its financial markets have been a source of inspiration for many. With NSE IX-SGX Connect, we have deepened our ties with one of the fastest growing economies in the world and further strengthened the partnership between SGX and NSE.
GIFT City, as a world-class financial centre, has been designed to foster innovation and create an ecosystem that attracts global investors. By leveraging the strengths of both SGX and NSE in GIFT City, we have created a seamless bridge that enables investors to tap into the immense opportunities presented by India.
The Connect signifies SGX and NSE’s shared vision of a dynamic and interconnected capital market in Asia. We are excited with the tremendous potential that our Connect offers, as the liquidity pools of domestic and international investors converge in GIFT City. With the support of our regulators, both NSE and SGX look to build upon this collaboration to expand our offering, as well as unlock new value and growth avenues for investors.
SGX is committed to support and enhance international investors' access to India's equity markets. Our market participants can be assured of the highest standards of trading, clearing and risk management. We will continue to work closely with our partners and regulators in India, to create a vibrant trading ecosystem for GIFT Nifty that will attract more capital into the Indian market.
I thank the Indian and Singapore governments, IFSCA, the Monetary Authority of Singapore, NSE, all our stakeholders, partners and members for their firm support throughout this journey. This project has taken the efforts of many who have worked tirelessly to ensure a smooth transition, and we are grateful for your cooperation.
Let us celebrate this historic milestone and look ahead with confidence to even deeper collaboration between Singapore and India’s capital markets.
The views, thoughts and opinions contained in this Focus article belong solely to the author and do not necessarily reflect the WFE’s policy position on the issue, or the WFE’s views or opinions.