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Authors: Super UserNSE Chief Executive Officer Vikram Limaye on Saturday said the bourse was still in talks with the Singapore Exchange on the Nifty derivative contracts that the overseas bourse is planning to launch next month.
In an interview with ETNow, Limaye said it is too premature to talk anything about it.
NSE is ending the licensing of its products to SGX in August.
But SGX last month pulled off a major surprise by announcing that it would list new India equity derivative products in June, providing market participants continuity with their India risk management exposures.
It will simultaneously delist all derivatives contracts, including Nifty futures, which were based on a partnership with the NSE.
The new products will be called India futures and India options, and SGX will use the closing Nifty price to settle its new contracts, SGX said.
NSE back them said it would examine the SGX announcement and had asked for more details from SGX on the product structure
“We hope to have a conversation with the SGX team to get a better understanding of the product.
Post that conversation and review of the material in the public domain and the announcement made by exchanges in February, we will need to make an assessment whether or not the products announced by SGX are compliant with the announcement made by the Indian exchanges,” Limaye had said on April 12.
In February, three domestic bourses — NSE, BSE and the Metropolitan Stock Exchange —announced that they would cancel licensing agreements with overseas exchanges.
SGX is reported to have the necessary regulatory approvals for launching its new set of contracts.
“The US Commodity Futures Trading Commission’s approval for direct market access to the India Futures and India Options in the US has been obtained.
These contracts may be offered and sold to persons in the US,” its circular stated.
Limaye welcomed the Sebi decision allowing domestic equity bourses to extending trading hours in equity derivatives till 11.55 midnight.
He said it is very unlikely that market participants would have any opposition to such a move.
He said NSE would also like to keep the cash market open till 11.55 midnight, but market participants do not seem to like the idea.
Meanwhile, Limaye said NSE will launch commodity derivatives from October 1.
The bourse has already applied for the Securities and Exchange Board of India for licence to launch a commodity derivatives platform.
BSE too is planning to enter the commodity derivatives market.
The move to launch their commodity trading platforms comes in the wake of the capital market regulator allowing integration of stocks and commodities trading on a single exchange from October this year.
