NSE IX – SGX GIFT Connect becomes fully operational, first session ends with $1.3bn volumes

R ARIVANANTHAM
GIFT IFSC, GANDHINAGAR, JULY 3

NSE International Exchange (NSE IX) and Singapore Exchange (SGX Group) on Monday announced a strong start to the full-scale operations of the NSE IX-SGX GIFT Connect at the International Financial Services Centre (IFSC) at GIFT City in Gandhinagar.

Trading of the USD-denominated GIFT Nifty started this morning with an open interest of US$8.05 billion in Nifty futures and over US$1.05 billion open interest in Nifty Options from SGX’s international client network. The first session of nine hours recorded turnover of US$1.13 billion at 15:40 IST, demonstrating high confidence from global institutional investors. There was not a single complaint. The platform and the risk management systems have worked well without any technical glitches, said Ashishkumar Chauhan, Managing Director, NSE at the bell-ringing ceremony to mark the end of the first session at 3.40 pm on Monday.

An important day today – July 3, 2023 – in the history of @GIFTCity_ and Gujarat. On this auspicious Guru Purnima Day, the @SGXGroup started sending 100% of buy/sell orders they receive for @NSE_NIFTY index futures and options to @nse_ix at Gift City for matching – which has made…

— CMO Gujarat (@CMOGuj) July 3, 2023

• Full-scale operations of NSE IX-SGX GIFT Connect commenced on Monday with US$8.05 billion open interest in Nifty futures and over US$1.04 billion open interest in Nifty Options
• First of its kind high-performance financial corridor between Singapore and India, driving deeper liquidity for the Nifty
• GIFT NIFTY contracts are available for trading for almost 21 hours, which overlaps Asia, Europe, and US trading hours
• The platform and the risk management systems have worked well without any technical glitch: NSE MD Ashishkumar Chauhan

The first session of the 21-hour, two-session trade started at 6.30 am on Monday and saw about 30,000 trades at the end of the first trading session, with a trade volume of $1.3 billion and open interest of $9.4 billion.

Ashishkumar Chauhan, MD & CEO, NSE said, “Today’s shift of SGX Nifty trading to Gift Nifty is a momentous occasion for Indian capital market as Gift IFSC is now the official gateway of India to the world as far as investments into India is concerned.  It has been a long cherished dream which has come true on this auspicious occasion of Guru Purnima. We are proud of this important landmark with full scale operations of NSE IX – SGX GIFT Connect, with onshoring Nifty contracts to NSE IX.  The Connect becomes a symbolic event of opportunity, innovation and unparalleled access between India and the world. We look forward to expand our long-standing strategic partnership with SGX Group. It is a major step forward for India to be a ‘price setter’ of the financial world, as envisioned by Hon’ble Prime Minister of India Shri Narendra Modi ji. This is the result of the meticulous preparation and hard work of India and Singapore governments, regulators, both exchanges and Gift City to make today a reality.  Our broker members and SGX members also have worked hard to achieve this landmark. I want to thank everyone for their support and look forward to begin this journey for a long time.”

V Balasubramaniam, MD & CEO, NSE IX, said, “We are excited that the GIFT Connect between SGX Group and NSE IX is now fully live, and we look forward to a win-win partnership. This will also herald the onshoring of offshore contracts on India’s Equity benchmark index. NSE IX will strive to work with participants across the globe to deliver the best-in-class trading, clearing and settlement infrastructure. We are extremely thankful to governments and regulators in both countries in helping us achieve this Connect.”

Injeti Srinivas, Chairman, IFSCA, said, “The NSE IX – SGX GIFT Connect is a classic demonstration of how two exchanges from two different jurisdictions can forge a mutually beneficial collaboration. The complete migration of the re-branded GIFT-NIFTY to GIFT IFSC will consolidate the international liquidity pool for Nifty products in the NSE IX exchange and will a give a boost to GIFT-IFSC as a global hub for international financial products and services.”

Tapan Ray, MD & Group CEO, GIFT City, said, “This significant development not only fortifies GIFT City’s stature as a fast-emerging global financial hub, but also aligns impeccably with the visionary aspirations of Hon’ble Prime Minister, Shri Narendra Modi, to position India at a preeminent position in international finance. It stands as a testimony to our unwavering commitment to onshore international financial services activities from offshore, within GIFT City’s realm.  The extension of trading hours and the exclusive trading of US dollar-denominated Nifty derivatives on NSE International Exchange will attract discerning global investors while propelling economic growth at an accelerated pace. By facilitating seamless access to global markets and fostering a culture of innovation, this momentous development will undeniably catalyse India’s emergence as a vibrant financial powerhouse.”

#SGXNews-NSE IX-SGX GIFT Connect becomes fully operational: https://t.co/865gx9NcVS
Full-scale operations commenced today w/ US$8b OI in Nifty futures & >US$1b OI in Nifty options. Speech by Boon Chye: https://t.co/Sinsh8vWLF@NSEIXGiftNifty @nse_ix @NSEIndia #GIFTNifty #SGXGroup pic.twitter.com/91F9XTNn5s

— SGX Group (@SGXGroup) July 3, 2023

Loh Boon Chye, Chief Executive Officer, SGX Group, said, “We are excited to support international investors by facilitating access to one of the most exciting markets in Asia via a first-of-its kind connect for the Nifty. This has been a ground-breaking initiative since its inception, and we’d like to thank NSE and our partners in India for their unwavering commitment and support. We look forward to build upon this collaboration to enhance our offerings to global investors.”

Michael Syn, Senior Managing Director and Head of Equities, SGX Group said, “Today marks a historic milestone in the longstanding partnership between SGX Group and NSE and the start of an amazing new chapter for the Nifty. This innovative pathway delivers a unified liquidity pool, bringing together international and domestic participation, and an expanded shelf of products for international investors, setting the stage for greater growth in the Nifty. On top of the Nifty, SGX offers international investors access to all of Asia through our exciting portfolio such as China, Japan and climate-related products and investors can enjoy cross margin and risk management benefits across all products.”

GIFT NIFTY contracts are available for trading for almost 21 hours, which overlaps Asia, Europe, and US trading hours. Trading hours for Index Futures and Index Options are as follows: