SGX extends Indian derivatives options
The latest partnership between the Singapore
Exchange (SGX) and India’s National Stock Exchange (NSE) will, from Monday, allow investors
to trade in Singapore new options contracts based on the Nifty index.
On 16 July, SGX will begin offering SGX S&P
CNX Nifty options, which the exchange said would facilitate access to the
Indian economy for offshore investors. The new products will be supported by four
market makers from launch, comprising BNP Paribas, Optiver Australia, Susquehanna
International Group and Timber Hill.
“We are delighted to bring to international
investors Nifty options, yet another NSE product based on the benchmark Nifty
index,” said Michael Syn, head of derivatives, SGX. “Investors coming to SGX
will find in the Nifty options, together with the Nifty futures and Indian
ETFs, a convenient and easy way to invest in the Indian economy and manage
SGX already offers trading in S&P CNX Nifty
futures and claims to account for approximately 25% of Nifty futures trading
globally. According to the exchange’s own data, trading in SGX Nifty futures
reached 7.4 million contracts in the first six months of 2012, with an average
of 59,358 contracts traded daily and an open interest of 240,317 contracts as
at end June 2012.
The new Indian products follow the announcement of
key initiatives in recent weeks designed to increase SGX’s appeal as a gateway
for investing across Asia. The bourse announced its readiness for trading renminbi-denominated products last week, and confirmed a cross-listing initiative with the London Stock Exchange earlier this week.