SGX Nifty to be delisted; will be known as GIFT Nifty from July 3

SGX Nifty

The National Stock Exchange (NSE) on May 16 said it has received regulatory approvals to delist Nifty 50 futures from Singapore Exchange (SGX) from July 3 as all orders of SGX will be completely transferred to NSE IFSC bourse for matching.

The exchange said that regulatory approvals have already been obtained from the Monetary Authority of Singapore (MAS) and the International Financial Services Centres Authority (IFSCA).

"From July 3 onwards, all SGX orders will be 100 per cent transferred to GIFT City, NSE IFSC exchange for matching…SGX Nifty will be called GIFT Nifty from July 3," an NSE spokesperson said.

With the migration of all open positions in SGX Nifty to NSE IFSC Nifty, there will be no open interest remaining in SGX Nifty. The SGX Nifty will be suspended from trading after the end of the trading session on June 30. As a result of this development, investors will be able to trade in the dollar-denominated Nifty futures contract available on the SGX in Gift City.

NSE IFSC, a wholly-owned subsidiary of NSE, is an exchange at International Financial Service Center (IFSC) in GIFT City, Gujarat.

Singapore Exchange (SGX), last month, announced that NSE IFSC-SGX Connect at International Financial Service Center in GIFT City will become operational on July 3 after the transition of SGX Nifty derivatives to NSE IFSC. The move will enable investors to trade in dollar-denominated Nifty futures contracts available on the SGX in Gujarat International Finance Tec-City or GIFT City. Also, investors would have real-time access to NSE IFSC market data.

"Full-scale operation of the NSE IFSC-SGX Connect (Connect) with the transition of SGX Nifty derivatives to NSE IFSC will take place on July 3, 2023. Following the transition, all US dollar-denominated Nifty derivatives contracts will be exclusively traded on NSE IFSC," the Singapore bourse had informed its trading members in a circular.

However, shifting the instrument to India is unlikely to change much as all the costs and facilities extended to traders in Singapore will remain the same in GIFT City.

In a Moneycontrol report, it was noted that while global traders will continue to reap the benefit, Indian traders will have to watch and salivate at a lost opportunity. This is because resident Indians are not allowed to trade in derivative instruments in global markets. However, proprietary traders, if they open an account with a broker can trade in SGX Nifty.