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 their risks.”
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.