Singapore SE to launch Nifty futures

The outgoing managing director of NSE, RH Patil, said the introduction of Nifty on Singapore Stock Exchange would add to business volumes in the domestic exchange over time. "Indian stocks and derivatives will be traded globally as and when we move towards full convertibility of the rupee in the near future," he added.

The Singapore SE president Ang Swee Tian, said "We wish to bring value to the Indian capital markets through our association with international brokers and distributors."

The incoming NSE managing director, Ravi Narain, said the Nifty futures would become a global product with its introduction in Singapore SE. Besides, it would impart greater visibility and liquidity to the product. He added that there was nothing to feel insecure about offshore trading in Nifty futures.

"You never know, this might just provide the trigger for higher trading levels in the Indian market," he pointed out.

Jimmy KH Ang, executive vice-president and head, derivatives trading division of Singapore SE, said concurrent trading on two exchanges would be complementary in nature and would promote volumes on the domestic exchange. Giving an example, he said the Nikkei 225 futures (which was introduced in Simex first and then introduced in the parent exchange in Tokyo) had developed into a healthy product.

In Simex, it averages a daily volume of 25,000 contracts while in Tokyo it has touched about 100,000 contracts daily, he added.