Singapore Exchange (SGX)

[weijian]

This will be a huge blow to SGX as Nifty futures account for ~10-15% of total derivative volume (2nd largest after China A50 futures). SGX has put out a PR today that talks about the various actions it will take and the assurance to all market participants.

I reckon this will be 1 of the first stern test for the new CEO and his team, to see how they respond to this Indian rejection.

SGX: Will seek 'viable solutions' after India pulls support for offshore Nifty futures

THE SINGAPORE Exchange (SGX) said that it will work with the National Stock Exchange of India (NSE) to develop "viable solutions for international investors" after India's three main bourses said they would stop licensing data for offshore derivatives linked to their domestic indices.

"SGX wishes to assure market participants that we will take all measures to maintain orderly trading and clearing of SGX India equity derivatives for our international clients," SGX said in a statement.

"We will work closely with NSE, the market participants and the regulators, over the next several months to develop viable solutions for international investors into India."

India's three main stock exchanges - NSE, the Bombay Stock Exchange (BSE), and the Metropolitan Stock Exchange of India (MSEI) - said on Friday that they will stop licensing their securities or sharing data with foreign exchanges in a bid to prevent trading volumes from leaking overseas.

http://www.businesstimes.com.sg/companie...hore-nifty


SGX 11th Feb response:
http://infopub.sgx.com/FileOpen/20180211...eID=488609

This is probably a win-win situation for everyone involved - GIFT gets connected to international liquidity (that is 10x bigger than it is) while SGX continue to earn the fees through clearing.

The tussle between SGX and NSE reminds me of the tussle between Netflix (platform provider) vs Disney/WarnerMedia/20th Century Fox (content providers). While "content is king" (NSE), but the platform provider (SGX) owns the customer relationship and if there is big enough demand (network effect of sorts), the platform provider (SGX) has enough bargaining power to squeeze its suppliers. As what has happened at Netflix whom are going into originals, SGX Edge is also about creating "content" now.

SGX, NSE aim to trade Nifty products via Gift City by end-2020
https://www.businesstimes.com.sg/stocks/...y-end-2020