Complete transition of SGX-Nifty derivatives contracts to SGX-Connect from July 3
Announcing the full-scale operation of NSE IFSC-SGX Connect at GIFT City, Gandhinagar, the Singapore Exchange (SGX) issued a circular to its market participants stating that a full-fledged liquidity switch will be made effective from July 3, 2023, from SGX to the National Stock Exchange of India (NSE)‘s IFSC-SGX Connect.
“Full-scale operation of the NSE IFSC-SGX Connect (Connect) with the transition of SGX Nifty derivatives to NSE IFSC will take place on 3 July 2023. Following the transition, all US dollar denominated Nifty derivatives contracts will be exclusively traded on NSE IFSC,”
It also added that in executing the Liquidity Switch, SGX will automatically migrate all open positions in SGX NIFTY after the end of the T session, and which are not netted off-in post-trade, on June 30, 2023, to NSE IFSC NIFTY.
Those market participants who do not wish to have their SGX NIFTY migrated to NSE IFSC NIFTY by SGX should close out the open positions in SGX NIFTY or perform the switch themselves via open market trading, before the end of the T session on June 30, 2023, in an orderly manner, it said.
Notably, Prime Minister Narendra Modi inaugurated NSE-SGX Connect at GIFT IFSC on July 29, 2022. Since then, the SGX Group and NSE have been working closely with technology partner TCS and SGX members to transition the trading of Nifty contracts to NSE IFSC.
