NSE IFSC-SGX Connect To Become Operational From July 3

The Singapore Exchange on Tuesday said NSE IFSC-SGX Connect at International Financial Service Center in GIFT City will become operational on July 3 after the transition of SGX Nifty derivatives to NSE IFSC. The move will enable investors to trade in dollar-denominated Nifty futures contracts available on the SGX in Gujarat International Finance Tec-City or GIFT City. Also, investors would have real-time access to NSE IFSC market data.

NSE IFSC, a wholly-owned subsidiary of NSE, is an exchange at IFSC in GIFT City, Gujarat. "Full-scale operation of the NSE IFSC-SGX Connect (Connect) with the transition of SGX Nifty derivatives to NSE IFSC will take place on July 3, 2023. Following the transition, all US dollar-denominated Nifty derivatives contracts will be exclusively traded on NSE IFSC," the Singapore bourse informed its trading members in a circular.

In preparation for the transition for SGX members to trade on the NSE IFSC-SGX Connect, the bourse said it will perform a liquidity switch after the close of business on June 30 for certain futures contracts. Such liquidity switch would be completed by July 3. In executing the liquidity switch, SGX will automatically migrate all open positions in SGX Nifty after the end of the trading session, which are not netted off in post-trade on June 30 to NSE IFSC Nifty. 

With the migration of all open positions in SGX Nifty to NSE IFSC Nifty, there will be no open interest remaining in SGX Nifty. The SGX Nifty will be suspended from trading after the end of the trading session on June 30. Further, the Singapore bourse said it intends to delist the SGX Nifty at a later date, pending due regulatory process.

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 through open market trading, before the end of the trading session on June 30 in an orderly manner, SGX said.