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The National Stock Exchange (NSE) and the Singapore Stock Exchange (SGC) have inked a deal to jointly start trading in Gujarat International Finance Tec-City (GIFT). Simultaneously, the exchanges have withdrawn arbitration proceedings between them. The arbitration was with regard to a dispute over Nifty trading on SGX.
“The NSE International Financial Service Centre (IFSC)-SGX Connect aims to bring together the trading of Nifty products to and create a larger pool of liquidity, comprising international and home market participants,” NSE said in a release.
BusinessLine reported on September 11 that NSE and SGX would soon announce a deal. Although the details of the deal structure have not been divulged, sources that the exchanges will set up a special purpose vehicle (SPV). This SPV will act as a conduit for trading on GIFT for funds based out of Singapore.
The two exchanges had recently received regulatory clearances from authorities in India and Singapore for implementing Connect.
“Building connectivity across international platforms in Singapore and India will facilitate unfettered access for global market participants, and in turn enhance investments and capital market flows between India and the world," said Loh Boon Chye, Chief Executive Officer of SGX.
“We deeply appreciate the continued support provided by the government and regulatory authorities in India and Singapore. We look forward to broadening participation and deepening liquidity in Nifty products for international participants, as part of the growth of GIFT City,” he added.
Vikram Limaye, Managing Director and Chief Executive Officer of NSE, said Connect is one of the key developments for the integration of GIFT City ecosystem with the international financial markets.
Injeti Srinivas, Chairman of International Financial Services Centres Authority, (IFSC Authority), said the NSE-SGX Connect for funelling trading in Nifty Products at SGX to GIFT IFSC is an important joint financial market initiative by India and Singapore.
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