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Responding to market feedback, the re-launched SGX CNX Nifty Index futures will have a smaller contract size. This enhancement will help to facilitate even more active trading and to encourage greater market participation in the Nifty contract.
As an Asian derivatives hub, SGX remains committed to further enhance capital efficiency for its customers. Under the new contract, customers will enjoy margin savings in the form of inter-commodity spreads for SGX equity contracts between the CNX Nifty Index and MSCI Taiwan Index, Nikkei 225 Index and MSCI Singapore futures contracts.
Mr Thomas Tey, Senior Vice President and Head of International Products at SGX said: “Today's India presents a vibrant market opportunity. The sentiment towards India’s growth potential has been positive and our market participants are enthusiastic about the SGX Nifty contract. This is an opportune time given the recent signing of the Comprehensive Economic Co-operation Agreement (CECA) by India and Singapore.”
The re-launch of the SGX CNX Nifty index futures contract will add flavour to our suite of Asian equity derivatives that caters to both retail and institutional customers globally.
The CNX Nifty Index is a well diversified market capitalisation weighted index comprising 50 large and highly liquid securities traded on the National Stock Exchange of India. The Nifty index covers about 23 sectors of the Indian economy and approximately 60% of the total market capitalisation of the underlying India bourse.
