Now, trade Dow, S&P 500 futures on NSE

The National Stock Exchange (NSE) has signed a cross-listing pact with the Chicago Mercantile Exchange, reports CNBC-TV18's Mrinalini Krishna. Nifty futures will be traded on the CME, while the Dow Jones and S&P 500 futures will be traded on the NSE. The move is a step towards alignment to global markets.

Trading in Dow Jones and S&P 500 futures is subject to regulatory nod and is to be rupee-denominated on the NSE. It is also the first time that the S&P 500 futures will be traded outside the United States. Trading is likely to occur during usual Indian market hours.
 
The move will allow retail and high networth investors to take rupee-denominated exposure to US indices. Domestic institutions can also take exposure to the US market without any currency risk. Also, foreign institutional investors, who cannot trade directly in India, can hedge via Nifty futures on the CME.

NSE has also renewed its contract with the Singapore Exchange (SGX) for trading in Nifty futures. It plans to launch other indices on the SGX. This pact will CME will result the dilution of Nifty futures volumes on the SGX.