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SGX Nifty Transitions to GIFT Nifty: A Shift in Indian Equity Trading

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With effect from today i.e. July 03, 2023, SGX Nifty, also known as the Singapore Exchange Nifty (listed on the Singapore Exchange – SGX Group) which was the futures contract based on the Nifty 50 Index [which represents the performance of the top 50 companies listed on the NSE India (NSE)] has shifted its $7.5 billion derivative trading and has officially been rebranded as GIFT Nifty in the International Financial Services Centres Authority. The SGX Nifty allowed the international investors to trade and gain exposure in the Indian equity market without having to physically trade on NSE India.

The US dollar-denominated contracts for Nifty futures, previously traded on the SGX, have now shifted to the NSE India International Exchange (NSE IX) in GIFT City. This transition means that trading will take place within the regulatory framework of the International Financial Services Centres Authority in Gandhinagar, Gujarat.

During such a liquidity switch, all open positions in SGX Nifty have been transferred to NSE IFSC Nifty, marking a significant development in the market. According to SGX, this move aims to optimize liquidity and enhance the trading experience for market participants. As part of this arrangement, SGX and Nifty have agreed to share costs and revenues in an equitable manner. In a recent interview, Michael Syn, SGX’s Head of Equities, highlighted that the distribution would be approximately 50-50, ensuring a fair and balanced approach.

Earlier, in April 2023, SGX vide a circular had informed that NSE IFSC-SGX Connect at International Financial Services Centres Authority in GIFT City will become operational on July 03, 2023 after the transition of SGX Nifty derivatives to GIFT Nifty.

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