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Latest News

19 April 2018

New India Equity Derivatives Products To Be Listed By Singapore Exchange

By June, the Singapore Exchange (SGX) will be producing a list of new India equity derivatives products. The Singapore Exchange asserted that the new products will provide market participants with continuity and the capacity to progressively improve from the existing and very good bunch of derivative products that will expire in no time. This is taking place after the announcing of the three stock exchanges that they will stop the provision of data feeds to foreign stock exchange in Paris and end licensing deals in February.

India Single stock futures equally add these products to the existing offerings and this have attracted active involvement of the global institutional clients, right from when it was launched, it demonstrated demand for access products. This information was declared on April by the Singapore Exchange.

In early February, the India Single Stock Futures was launched and it allows investors no matter your registration status as an investor in India, to have idea of the fifty companies found in the National Stock Exchange of India’s (NSE) benchmark of fifty indexes.

A fund manager based in Singapore accepts the plan of the Singapore Exchange for the new product that is being expected to arrive in June equally saying that investors will eventually have enough time to adjust. And due to the policy of the company the source pleaded anonymity when he said that investors on Singapore’s Exchange Nifty suite of derivative products presently will have about two months to make the transition which is believed to be enough time for proper transition.

In 2000 The Singapore’s Exchange signed a deal on licensing with the NSE, however, the new products has nothing to do with the deal, which allows futures and options based on the Nifty 50 index to be traded in Singapore. This is important information to investors as it brings insight o what is truly being invested in as their security is assured.

The NSE has actually ended the deals and has terminated all their licenses hey had issued to foreign exchangers to offer offshore transactions tied to India’s benchmark index. The termination of licenses by the NSE was done alongside two other Indian stock exchanges in February. This is a drastic measure taken in order to prevent liquidity from India crossing to foreign countries. Singapore Exchange has however been offered a six month grace period in which after are expected to end their licenses too.

However, we are working effortlessly on checking joint trading and clearing model in Gujarat International Finance Tech (GIFT) city. The trading is between the NSE and Singapore Exchange in order to manage the risk involved in allowing participation of international bodies.

A solution is what we are still deeply researching on; the solution is expected to come as a means that would meet our clients’ regulatory requirements while the entire financial market is expected to grow eventually. This would bring the liquid international market directly into Gujarat International Finance Tech (GIFT) City. For the time being, our new India equity derivative product is expected to continue, in order to provide exposure of India to international portfolio investors. All our efforts are geared towards staying at the top of our clients’ needs, while making sure that their investments are secured and profitable, for that is the only way to retain them.