SGX Nifty Futures to start trading at GIFT City from this week

The popular SGX Nifty futures contract, which is currently traded on Singapore Exchange, will debut in Gujarat International Finance Tec (GIFT) City this week.

Reports said prime minister Narendra Modi will launch the dollar-denominated Nifty futures and inaugurate the India International Bullion Exchange on Friday.

Sources said SGX Nifty will trade simultaneously in GIFT City and Singapore initially before discontinuing in Singapore. SGX Nifty will reportedly trade at GIFT City for close to 19 hours a day.

“A good step. Because of the timing, foreign investors usually get an edge because Singapore opens first,” said Aditya Kondawar, partner and vice president of Complete Circle Capital. “This will do away with that advantage plus the volume will come to GIFT City in India.”

Nifty derivatives contracts on the SGX are among the most traded ones. They are used by global investors to hedge their exposure to India. SGX Nifty is a joint venture of NSE and Singapore exchange.

National Stock Exchange and SGX have formed a special purpose vehicle - NSE IFSC-SGX Connect - to launch Nifty products at GIFT City. This comes after both NSE and SGX went to court over a dispute over a flight of trading volumes to Singapore.