The circular also pointed out that any market participants that did not wish to migrate their positions from SGX NIFTY to NSE IFSC NIFTY should close their open positions in SGX NIFTY.

 First Published on: MONEYCONTROL NEWS APRIL 19, 2023 / 11:06 PM IST

:: The Singapore Exchange (SGX) issued a circular earlier in the week indicating that there will be a full-fledged liquidity switch from SGX NIFTY to NSE‘s IFSC-SGX Connect, which will effectively facilitate exclusive trading of all US dollar-denominated Nifty derivatives contract on the NSE IFSC.

The switch will be operational from June 3.

SGX Nifty is widely credited as a performance indicator of Indian stock markets. The former opens at 6.15 AM IST whereas Indian bourses are open for trading from 9:15 AM on weekdays.

As a result of this development, investors will be able to trade in the dollar-denominated Nifty futures contract available on the SGX in Gift City.

“Full-scale operation of the NSE IFSC-SGX Connect with the transition of SGX Nifty derivatives to NSE IFSC will take place on 3 July 2023. Following the transition, all US dollar-denominated Nifty derivatives contracts will be exclusively traded on NSE IFSC,” the Singapore Exchange said.

The circular also marked that in the course of the liquidity switch, SGX will automatically migrate all open positions in SGX NIFTY at the end of the T session, including those positions which are not netted off-in post-trade, on June 30, 2023, to NSE IFSC Nifty.

The circular also pointed out that any market participants that did not wish to migrate their positions from SGX NIFTY to NSE IFSC NIFTY should close their open positions in SGX NIFTY or “perform the switch themselves via open market trading, before the end of the T session on June 30, 2023, in an orderly manner”

The switching of positions from SGX NIFTY to NSE IFSC NIFTY will be based on a conversion ratio of 1:1.

SGX will waive all relevant clearing and position transfer fees for the SGX NIFTY and NSE IFSC NIFTY in this liquidity switch, the SGX circular said.

“For avoidance of doubt, the trading sessions, timings for NLT, and post-trade activities for NSE IFSC NIFTY will be business as usual,” the circular added.

First Published on: MONEYCONTROL NEWS APRIL 19, 2023 / 11:06 PM IST

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