The real-time connection between National Stock Exchange and Singapore Stock Exchange through the international finance hub in Gujarat will go live on July 15, according to a notification sent by the SGX to all its vendors.
The IFSC-SGX connect will mark the beginning of moving overseas Nifty trades to Gujarat International Finance Tec-City or GIFT City. The Singapore bourse has incorporated a special purpose vehicle–SGX India Connect IFSC Private Ltd.–for the arrangement.
Once fully live, orders for the Nifty-based derivatives contracts from trading members based in Singapore will be routed via SGX-ICI to NSE IFSC for trading and execution. The trades will be subsequently cleared and settled through NSE IFSC Clearing Corporation Ltd., with SGX-Derivatives Clearing as the central counterparty.
The connect will offer futures and options for benchmark Nifty 50 Index, Nifty Bank Index, Nifty IT Index and Nifty Financial Services Index. All F&O contracts will be listed on NSE IFSC.
The connect will have two sessions. The first from 8:00 a.m. and till 5:00 p.m. India Standard Time; and the second from 5:02 p.m. till 2:45 a.m. IST, in line with the trading hours of the U.S. markets.
The connect started testing negotiated large trades in May. Volumes and value began inching up since mid-May, with the total value of trades at $25 billion last month.