BSE jumps 2% on move to curb Nifty trading in Singapore

Reuters Feb 12 | Updated on February 12, 2018 Published on February 12, 2018

Shares of BSE Ltd rose as much as 1.96 per cent to the highest since February 8.

BSE, along with the National Stock Exchange and Metropolitan Stock Exchange of India, had said on Friday it would stop licensing products and data to foreign exchanges such as Singapore Exchange Ltd (SGX).

Actions raised hopes that Indian exchanges could see increased volumes in GIFT City, an international finance centre in Gujarat. GIFT City offers dollar-based derivatives contracts, low taxes and good infrastructure. It is India's attempt to compete against global exchanges for offshore investors.

Shares in Singapore Exchange Ltd (SGX), however, fell as much as 8.75 per cent, their biggest intraday decline since November 2008, on worries about lost revenue.

Analysts say the move would especially affect SGX’s Nifty 50 index futures, which is the Singapore Exchange’s flagship Indian equity derivatives product and accounts for about 12 per cent of its total derivatives trading volume.

Published on February 12, 2018
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