India Index Services & Products Limited (IISL), a National Stock Exchange (NSE) group company, and Singapore Exchange (SGX) introduce futures on Indian sector-specific index futures on SGX. This is the first time that derivatives on Indian sector indices are being launched outside India.
SGX will list four USD-denominated index futures contracts based on IISL’s sector indices, specifically the SGX Nifty Bank Index Futures, SGX Nifty IT Index Futures, SGX Nifty CPSE Index Futures and SGX Nifty Midcap 50 Index Futures.
The introduction of sector index futures contracts will deepen SGX’s Indian product offering and will provide offshore investors access to specific trading opportunities in the key growth sectors of the world’s fastest growing economy.
SGX’s flagship Indian equity derivative product, the SGX Nifty 50 Index Futures, is based on IISL’s primary Indian equity benchmark Nifty 50 Index and is widely used by international market participants to gain offshore exposure to the performance of the Indian equity market. Volumes grew 30% year-on-year during 2015 to USD360 billion. SGX’s INR/USD futures contract is also SGX’s most active FX futures contract with more than USD750 million notional traded per day.
The SGX Nifty IT Index Futures and SGX CPSE Index Futures will launch on 29 March 2016, followed by the SGX Nifty Bank Index Futures and SGX Nifty Midcap 50 Index Futures in mid- 2016.
Effective Date: March 29, 2016