SGX Nifty Is Moving To GIFT City: What Changes For Traders?

The Monetary Authority of Singapore has granted the National Stock Exchange regulatory approval to delist Nifty50 futures from the Singapore Exchange and list them on the NSE IFSC Exchange.

What Happened? The SGX Nifty, a Nifty derivative, will undergo a name change to GIFT Nifty starting July 3. The exchange previously notified investors about the suspension of SGX Nifty trading, effective from June 30.

Starting July 3, the Singapore Exchange will transfer all trades on Nifty 50 futures to the NSE IFSC Exchange at GIFT City, Gandhinagar for matching. It will allow trading in Indian and global stock derivatives, index derivatives, currency derivatives, depository receipts and non-agriculture commodity derivatives 

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What Changes For Investors? The Singapore Exchange will automatically shift all open positions in SGX Nifty to NSE IFSC Nifty on June 30 as part of the liquidity switch.

“The SGX Nifty positions will be converted to NSE IFSC Nifty positions based on a conversion ratio of 1:1. Each new NSE IFSC Nifty position will be equivalent to one original SGX Nifty position,” Singapore Exchange said.

The exchange has assured traders who use SGX Nifty as an indicator of Indian stock market performance that they won’t experience any impact. It will maintain the usual trading sessions, timings for negotiated large trades, and post-trade activities for NSE IFSC Nifty. SGX Nifty opens at 6:30 a.m. Indian time while Nifty starts trading at 9:15 am.

Traders not willing to have their SGX Nifty position migrated to NSE IFSC Nifty will have to close their positions before June 30. 

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