NSE, SGX ink formal pact on NSE IFSC-SGX Connect

MUMBAI: National Stock Exchange (NSE) and Singapore Exchange (SGX) said on Tuesday they have entered into a formal agreement to cement the key terms for operationalising the NSE IFSC-SGX Connect. The two exchanges will also withdraw arbitration proceedings.

The parties did not elaborate on the terms and structure of the formal agreement, but said the proposed NSE IFSC- SGX Connect will bring together international and Gujarat International Finance Tec-City (GIFT) participants to create a bigger liquidity pool for Nifty products in GIFT City.

In August 2019, the two exchanges had received a set of approved regulatory dispensations from their statutory regulators obtaining their support on a joint proposal that the two exchanges submitted earlier this year.

On Tuesday, the two exchanges said they have recently received further regulatory clarifications from the relevant authorities on implementation of the Connect, and they will continue to work with key stakeholders to develop infrastructure and ensure member readiness prior to its implementation.

Loh Boon Chye, Chief Executive Officer of SGX, said, “Building connectivity across international platforms in Singapore and India will facilitate unfettered access for global market participants, and in turn enhance investments and capital market flows between India and the world.

“As Asia’s pioneering central counterparty, SGX will work with NSE and stakeholders to develop a connectivity infrastructure that incorporates international best practices and creates new value for existing and new customers,” said Loh Boon Chye, CEOof SGX.

“The connect will broaden the international and domestic participant base and further strengthen the capital market ecosystem in GIFT city resulting in more broad based development across asset classes and capital raising activity,” said Vikram Liamye, managing director and CEO of NSE.

The two exchanges were engaged in a bitter battle for control of the rising business in Indian equity derivatives, and the tussle had even reached the courts in 2018.