Singapore Exchange Ltd. and National Stock Exchange of India Ltd. will head to arbitration over their ongoing dispute on India derivative products offered by the Singapore bourse.
In separate May 29 releases, the two exchanges said that the Bombay High Court ordered the two parties to head into arbitration, with a decision on the dispute to be made by June 16. NSE's Index company had filed an injunction against SGX over the launch of three new India derivative products.
The legal fight began when Indian national exchanges, NSE, BSE Ltd. and Metropolitan Stock Exchange of India said in February that they will end all licensing agreements and stop offering live prices to overseas venues. SGX then presented its plan to launch an alternative set of products that would offer a similar form of hedging for global investors with exposure to the Indian equity market. In May, NSE filed an injunction with the Bombay High Court to stop the products' launch in June.
SGX said it will reschedule the launch of its new India derivative products, pending the outcome of the arbitration. It agreed to continue listing SGX Nifty contracts until Aug. 12, as with its license agreement with NSE. SGX said it will contest the interim injunction.
