NSE IX – SGX GIFT Connect becomes fully operational

First of its kind high-performance financial corridor between Singapore and India, driving deeper liquidity for the Nifty

The NSE International Exchange (NSE IX) and the Singapore Exchange (SGX Group) unveiled the successful launch of their joint venture, the NSE IX-SGX GIFT Connect. This monumental collaboration marks a significant milestone for both exchanges, as they embark on a mission to revolutionize cross-border investment and open up new avenues for international investors to tap into the booming Indian equities market.

The trading of the highly anticipated USD-denominated GIFT Nifty commenced on Monday morning, igniting immense excitement among global institutional investors. As the opening bell rang, the market witnessed a staggering open interest of US$8.05 billion in Nifty futures, signaling a strong belief in the potential of this new trading avenue. Additionally, Nifty Options garnered an impressive open interest of over US$1.05 billion from SGX's esteemed international client network. The first trading session alone recorded a remarkable turnover of US$1.13 billion at 15:40 IST, solidifying the confidence and enthusiasm of market participants.

With India's economy poised to become the world's third largest, the NSE IX-SGX GIFT Connect serves as a groundbreaking solution for international investors seeking exposure to the Indian equities market. This innovative platform brings together both domestic and international participants, creating a deeper liquidity pool and expanding the range of Nifty products available to investors. The trading and matching of USD-denominated Nifty equity derivatives will take place in the vibrant GIFT City, while the clearing and settlement of contracts will be managed by SGX in Singapore. This harmonious partnership ensures seamless execution and efficient operations, enhancing the overall trading experience.

The longstanding relationship between the National Stock Exchange (NSE) and SGX Group, which spans over 22 years, has laid the foundation for this momentous collaboration. Both exchanges are committed to fostering cross-border cooperation and continuously exploring new opportunities to develop cutting-edge product offerings. The NSE IX-SGX GIFT Connect stands as a shining example of their shared vision and commitment to innovation.

This integration of GIFT City's ecosystem with the international financial markets represents a major milestone in the development of vibrant and liquid markets for India access products. The ease of access for international investors, coupled with the support and guidance from the Governments of India and Singapore, as well as the Government of Gujarat, and regulatory bodies like the International Financial Services Centres Authority and Monetary Authority of Singapore, have been instrumental in realizing the successful implementation of the NSE IX-SGX GIFT Connect. The unwavering support from these entities underscores the significance and potential of this collaboration.

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:

Commenting on the occasion:

Shri. 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.”

Shri. 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."

Smt. Abigail Ng, Executive Director (Markets Policy & Infrastructure Department), MAS, said, “We congratulate NSE and SGX Group on the full-scale operationalisation of the NSE IX-SGX GIFT Connect. The strong start to this landmark initiative is testament to the strong collaboration between both exchanges, and marks an exciting new milestone in the growing financial cooperation between India and Singapore in deepening the connectivity between our respective capital markets.”

Shri. 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.”

Shri 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.”

Shri. 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.”

Shri 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.”