SGX Nifty to get delisted, reborn as NSE IFSC Nifty: What it means for traders

SGX Nifty, which is used as an early indicator of how the Indian equity market might open at 9:15 am every day, is set to get delisted from the Singapore Exchange soon and get reborn in the form of NSE IFSC Nifty from July 3.

The Singapore Exchange has informed investors that SGX Nifty will be suspended from trading after the end of the session on 30 June, which is a Friday, and that it also intends to delist the security at a later date.

"The SGX Nifty positions will be converted to NSE IFSC Nifty positions based on a conversion ratio of 1:1. Each new NSE IFSC Nifty position will be equivalent to one original SGX Nifty position," SGX said.

Traders who use SGX Nifty as an early indicator won’t be impacted as the bourse said the trading sessions, timings for NLT (Negotiated Large Trade), and post-trade activities for NSE IFSC Nifty will be business as usual. SGX Nifty opens at 6:30 am IST while Nifty starts trading at 9:15 am.

Traders who don't want to have their SGX Nifty position migrated to NSE IFSC Nifty will have to close their positions before the end of 30th June session.

On completion of the liquidity switch from SGX to NSE IFSC-SGX Connect on 3 July, there will be no open interest remaining in SGX Nifty. The SGX Nifty will be suspended from trading after the end of the session on 30 June.

Once the transition is complete, SGX Nifty50 Index Futures will be known as NSE IFSC Nifty50 Index Futures, SGX Nifty Bank Index Futures will turn into NSE IFSC Nifty Bank Index Futures while SGX Nifty 50 Index Options will transform as NSE IFSC Nifty50 Index Options.

NSE IFSC is a subsidiary of NSE which operates out of GIFTY City in Gujarat's Gandhinagar and allows trading in Indian and global stock derivatives, index derivatives, currency derivatives, depository receipts and non-agriculture commodity derivatives.