Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

SGX Nifty Futures likely to be Terminated by August 2018

1 min read

Last Friday, Indian bourses NSE, BSE & MSE decided to cancel licensing agreements for providing indices and securities-related data feed services to any foreign exchange or trading platform. It have taken a joint initiative to stop trading of derivative contracts based on Indian indices on overseas exchanges. It is a move to stop migrating liquidity to overseas exchanges.

These steps include barring third-party data vendors such as Bloomberg or Reuters from providing data from Indian exchanges for trading on overseas platforms. “Any usage of data provided by us for trading on international platforms will not be legally permissible,” said Vikram Limaye, managing director and chief executive of NSE.

This means the popular SGX Nifty futures contract will cease to exist, after a six-month notice period expires in August. “Our licence agreement with NSE will ensure the continuity of listing and trading our Nifty suite of derivative products till August 2018 at a minimum,” said SGX in the statement.

“NSE’s decision could result in at least a 4% cut to SGX’s total revenue,” said Sharnie Wong, a Bloomberg Intelligence senior industry analyst. SGX’s Nifty-related products accounted for about 10% of its total derivatives revenue in the first half of its fiscal year, based on BI’s estimate.

SGX isn’t the only overseas exchange affected by Friday’s move. NSE will also end its licensing arrangements with CME Group Inc., the Taiwan Futures Exchange and Osaka Securities Exchange, CEO Limaye said.

SGX assured investors on Sunday that regular trades and settlements will continue for Indian equity derivatives on its platform when the exchange opens on Monday. The Nifty suite of products licensed to SGX will continue to be available till August, after which the contract between NSE and SGX will expire. SGX added that trading in Nifty-based single-stock futures will continue.

“SGX will develop and launch new India-access risk management solutions to allow global participants in SGX India equity index family of derivative products, to execute their investment activities with continuity,” the exchange said in the statement.

SGX is also considering NSE’s Gujarat International Financial Tech (GIFT)-based International Financial Services Centre (IFSC) for creating products for global investors.

Current curbs would not be applicable for indices trading in International Financial Services Centre (IFSC) at Gujarat’s Gift City.

Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

Things you need to know before trading OTM Options

There is a saying that OTM options are for gamblers especially those who are blindly betting on cheaper options. And this post explores how...
Rajandran R
2 min read

Nifty Overheated and Will Nifty Pullback?

Nifty is racing towards an all-time high and in the current swing most of the price action happens in the form of gap up...
Rajandran R
30 sec read

Bank Nifty Futures – Market Profile Charts and Overheated…

Bank Nifty Futures - Market Profile Charts and Overheated Emotions - September Series
Rajandran R
18 sec read

Leave a Reply

Get Notifications, Alerts on Market Updates, Trading Tools, Automation & More