NSE IFSC on Monday said it has commenced the much-awaited NSE IFSC-SGX Connect by introducing negotiable large trades (NLTs) from the Singapore Exchange (SGX Group) in the GIFT City. This is the first phase in the operationalisation of the NSE IFSC-SGX Connect, which is expected to contribute significantly to the development of markets in GIFT City.
“NSE IFSC has successfully introduced Negotiable Large Trades (NLT) from Singapore Exchange (SGX Group) in GIFT City, marking the commencement of the NSE IFSC-SGX Connect,” NSE IFSC said in a statement.
Negotiable large trade (NLT) is an off-market privately negotiated trading facility that allows trading participants and their clients to arrange and transact large-sized orders away from the trading system. NLT is transacted off the exchange’s electronic trading facility but is subsequently reported to the clearing house.
Through the NSE IFSC-SGX Connect, which is a framework between NSE’s subsidiary in GIFT IFSC and the Singapore Exchange, the SGX trading members, their clients and investors who used to trade in NSE-listed Indian securities through SGX would now trade in these securities through NSE IFSC.
The Connect’s foundation was laid in August 2019 when the National Stock Exchange and the SGX Group entered into a collaboration agreement to create a unified liquidity pool for Nifty products in GIFT City via an innovative Connect model. “The Connect is expected to go live in July 2022, with the onboarding of SGX Group’s members,” NSE IFSC said in the statement.
NSE Managing Director and CEO Vikram Limaye said, “Today is a historic moment for NSE IFSC with the commencement of the much-awaited NSE IFSC-SGX Connect. We are committed towards developing GIFT-IFSC as India’s premier financial services centre and a gateway for global financial flows.”
He added that the NSE IFSC -SGX Connect is a strategic partnership with SGX Group in an innovative, first-of-its-kind structure and will help develop the exchange and the capital markets ecosystem in Gift City IFSC and contribute towards fulfilling the vision of Atmanirbhar Bharat as envisaged by our Honorable Prime Minister of India.
“I take this opportunity to thank the Government of India, IFSC Authority, GIFT City authorities, SEBI, RBI and the government and regulatory authorities in Singapore for their guidance and support” Limaye said.
SGX Group Chief Executive Loh Boon Chye said, “SGX Group is excited to see the NSE IFSC-SGX GIFT Connect reach another milestone with this commencement. We look forward to working closely with NSE to start the onboarding of our members to the Connect in July.”
NSE IFSC is a wholly-owned subsidiary of the NSE. The trading at NSE IFSC Ltd was launched on June 5, 2017, after approval from markets regulator Sebi. NSE IFSC has already launched trading in Indian and global stock derivatives, index derivatives, currency derivatives, depository receipts and non-agriculture commodity derivatives. NSE IFSC is the only exchange in GIFT City to be part 30 exempted by Commodity Futures Trading Commission (CFTC).
NSE was the first exchange in India to implement electronic or screen-based trading. It began operations in 1994 and is ranked as the largest stock exchange in India in terms of total and average daily turnover for equity shares every year since 1995, based on Sebi data.