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GIFT Nifty, a rechristened version of SGX Nifty, commenced its operations on Monday after a full liquidity switch from SGX to NSE International Exchange (NSE IX) at the International Financial Services Centre (IFSC) at GIFT City in Gandhinagar.
At the bell-ringing ceremony to mark the end of the first session at 3.40 pm on Monday, Ashishkumar Chauhan, Managing Director, NSE, said, “We have successfully completed the first session of nine hours. There was not a single complaint. The platform and the risk management systems have worked well without any technical glitches.”
Trading volume
The first session of the 21-hour, two-session trade started at 6.30 am on Monday and saw about 30,000 trades at the end of the first trading session, with a trade volume of $1.3 billion and open interest of $9.4 billion.
“The trading volumes are as per our expectations, and we are excited to commence GIFT Nifty from NSE IX,” said V Balasubramaniam, Managing Director and CEO, NSE IX.
The GIFT Nifty series of contracts will be available for trade in two sessions. The first session starts at 06.30 IST and ends at 1540 IST, while the second session commences at 1700 IST and continues till 02.45 IST the next day.
This enables USD-denominated Nifty derivatives trading at NSE IX under the regulatory framework of the International Financial Services Center Authority (IFSCA).
Injeti Srinivas, chairman, IFSCA, expressed confidence in IFSC becoming a suitable ground for private companies — Indian and global — to raise funds via equity listing from the exchanges in IFSC.
“So far, Indian companies can raise funds using depository receipts, but with changes in the Companies Act, the option to raise funds using the equity route from international exchanges has opened up,” Srinivas said.
“The extension of trading hours and the exclusive trading of US dollar-denominated Nifty derivatives on the NSE International Exchange will attract discerning global investors while propelling economic growth at an accelerated pace. By facilitating seamless access to global markets and fostering a culture of innovation, this momentous development will undeniably catalyse India’s emergence as a vibrant financial powerhouse, said Tapan Ray, MD and Group CEO, GIFT City.
The GIFT Nifty orders placed by SGX members will be routed to NSE IX for trading and execution, with clearing and settlement through SGX Derivatives Clearing.
In its earlier avatar as the SGX Nifty, it had 16-hour trading sessions starting at 0630 IST and ending at 2230 IST. Under the SGX-NSE IX Connect framework, NSE launched the new identity for GIFT NIFTY last month.
Trading has started for GIFT Nifty 50 derivatives, while other indices such as GIFT Nifty Bank, GIFT Nifty Financial Services, and GIFT Nifty IT will be available under the GIFT NIFTY suite. Equity derivatives will also be offered.
Notably, in July 2022, Prime Minister Narendra Modi inaugurated the NSE-SGX Connect set-up in collaboration between India’s National Stock Exchange (NSE) and Singapore’s Singapore Exchange Limited (SGX), and the first trade took place in on July 29, 2022.
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