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Report: Singapore, India bourses end trading link talks

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Report: Singapore, India bourses end trading link talks

Singapore Exchange Ltd. and National Stock Exchange of India Ltd. have ended talks regarding a potential cross-border trading link after failing to reach an agreement on several issues surrounding the project, Bloomberg News reported May 28, citing sources familiar with the matter.

The two bourses could not arrive at a consensus on issues, including timing, regulatory guidelines and the resources required for the trading link, the sources said.

Had the project pushed through, traders in Singapore would have been able to buy and sell derivatives on exchanges in the tax-free zone known as Gujarat International Finance Tec-City, or GIFT City.

Officials from both SGX and National Stock Exchange of India declined to comment, the news outlet said.

Tensions between the two bourses began in January when National Stock Exchange of India requested SGX to push back plans to launch single-stock futures that would track a number of large Indian companies, with SGX turning down the request.

In February, Indian stock exchanges NSE, BSE Ltd. and Metropolitan Stock Exchange of India then said they would stop providing data on Indian stock prices and indexes to foreign exchanges, and that they would terminate offshore agreements, effectively preventing SGX from offering Nifty 50 contracts.

While National Stock Exchange of India wanted SGX to hasten efforts on the cross-border trading link, the Singapore bourse chose to ready new contracts to replace the Nifty 50 futures. Officials in Singapore did not believe the trading link would be ready for months, one source said.

National Stock Exchange of India offered SGX a six-month extension to its Nifty 50 licensing agreement, but SGX ultimately declined amid concerns over client privacy in Gift City, the sources added.

Earlier in May, National Stock Exchange of India filed a court injunction to stop SGX from launching the new India derivative products in June. SGX has said it would defend the action, adding that the new India derivative products have obtained regulatory approval.

The next hearing in the case is scheduled for May 31.