The Singapore Stock Exchange (SGX) on Friday inaugurated its first offshore office in India at International Financial Services Centre (IFSC) at GIFT City in Gandhinagar. This brings the nation closer to bringing popular trading products such as SGX Nifty Futures onto Indian soil.
SGX, through its India entity, SGX India Connect IFSC, also announced the upcoming launch of GIFT Data Connect — a market data infrastructure to set up the NSE IFSC-SGX Connect, which was announced about two years ago.
GIFT Data Connect allows SGX’s international members to access real-time trading data of NSE’s Nifty contracts conveniently and seamlessly.
The opening of the SGX office at GIFT City is expected to encourage other subsidiary companies from Singapore to establish their offices there.
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In his comments, Tapan Ray, Managing Director, GIFT City, termed the entry of SGX to GIFT IFSC as a landmark step and hoped for “full fledge operation of the NSE – IFSC SGX connect to start around the Vibrant Gujarat Summit in January 2022.”
Loh Boon Chye, CEO at SGX, said, “Through GIFT Data Connect, we will bring capital markets together in innovative and sustainable ways with the trust and efficiency that SGX is known for,” he said, adding that through GIFT City, SGX looks to expanding its collaboration. The NSE IFSC-SGX Connect will facilitate investor access and enhance capital flows with Nifty at its heart.
Vikram Limaye, CEO, NSE, stated that the Market Data Connect would allow SGX members to read the price data of NIFTY derivatives products list on the NSE – IFSC in realtime. This, according to Limaye, “will help them to fine tune their trading strategies in preparation for the connect to go live.”
“NSE along with SGX is committed to have the unified orderbook in NIFTY Products at GIFT City at the earliest,” he added.
Data connect infra
NSE and SGX teams are working to set up the data connect infrastructure to ensure smooth transition of trading in Nifty derivatives to NSE-IFSC.
Also see: NSE, SGX want to rope in Hong Kong brokers on GIFT platform
Injeti Srinivas, Chairman, International Financial Services Center – Authority (IFSCA) termed the development a win-win for SGX and NSE as it will further boost global capital flows and will support India’s endeavour to integrate the global financial systems and position IFSC as the gateway for capital flows into and out of country.
“A lot of investments are looking for reliable, sustainable destinations for investments. We will be a natural destination for sustainable finance flows,” he said adding that green finance, sustainable finance, fintech, social capital all these areas will have an important role in the backdrop of the challenging times of climate change.