Under the Agreement, SGX-DT has been granted a licence by IISL to trade futures and options contracts based on the S&P CNX Nifty Index. The S&P CNX Nifty is a market capitalization weighted index that comprises 50 component stocks that represents some 42% of the total market capitalization of the Indian bourse.
SGX-DT and NSE have also agreed to cooperate in areas relating to derivatives trading, market-information sharing, staff training and technical assistance. The alliance hopes to eventually encompass cooperation in the securities market in cross-trading and co-clearing arrangements of each other's equity products.
"This partnership between SGX-DT, the NSE and IISL is an important step forward in our endeavor to grow our regional alliance relationships. We are excited by the opportunities this presents for bringing our two exchanges and IISL closer in both our securities and our derivatives markets," enthused Mr. Thomas Kloet, CEO of SGX. Dr R H Patil, NSE's Managing Director, said, "I am happy with the signing of a concrete and specific MOU with SGX, as it will be a springboard for the long-term cooperation between SGX and NSE in further growing and developing our respective capital markets."
Mr. Arup Mukherjee, Chief Executive Office of IISL added, "IISL is excited about this relationship with SGX-DT as it believes that SGX-DT will bring international focus to the S&P CNX Nifty through SGX-DT's many international participants base in derivatives trading. We expect the S&P CNX Nifty to become the benchmark index for all participants with interest in the Indian securities market."
