Following the launch of the connect on July 15 by Prime Minister Narendra Modi, nearly 40% of trades in India will run on TCS’s BaNCS technology platform. India’s largest technology company, Tata Consultancy Services Ltd., was selected to enable this transition at the Singapore Stock Exchange. However, this is not as easy as it seems, given the complexity of trading derivatives coupled with real-time settlement. The link will help in transitioning the liquidity pool away from Singapore to India's NSE IFSC in Gujarat's GIFT City. The Indian bourse then decided to stop sharing pricing data with SGX, prompting arbitration proceedings.īringing the two exchanges to the negotiation table, regulators including the Securities and Exchange Board of India, the Reserve Bank of India and Monetary Authority of Singapore charted a win-win situation in the form of NSE IFSC-SGX Connect. For more than a decade now, the NSE has tried to bring the offshore trading volumes for its products back to India. This caused the migration of foreign investors to SGX, increasing offshore trading of Nifty futures followed by Nifty options and stock futures and options. The NSE had struck a licensing agreement for Nifty products with the Singapore Stock Exchange. It will allow investors and trading members who traded in NSE-listed Indian securities through SGX to trade in these securities via NSE IFSC.
While there is an existing Hong Kong-Shanghai connect, this is for the first time that two countries, India and Singapore, have come together to launch such a link. NSE-IFSC-SGX Connect is a one-of-its-kind link that will connect different markets as one trading platform.
0 kommentar(er)
