The Singapore Exchange (SGX) today said it will offer Options contracts from July 16 under its latest product partnership with the National Stock Exchange (NSE) to enable investors to participate in India’s economic growth.
It would enhance offshore investors’ access to the Indian economy, said SGX, which accounts for about 25 per cent of Nifty futures trading globally.
“Investors coming to SGX will find in the Nifty Options, together with the Nifty Futures and Indian ETFs, a convenient and easy way to invest in the Indian economy and manage their risks,” said Mr Michael Syn, head of derivatives at SGX.
The Nifty Options would add to SGX’s suite of Asian equity derivatives, which include SGX S&P CNX Nifty futures, the dominant Indian product for international participants, he added.
SGX said the SGX Nifty futures traded 7.4 million contracts, averaging daily volume of 59,358 contracts, in the first six months of this year. Open interest stood at 240,317 contracts as of end-June 2012.
Market makers that have signed up to provide liquidity from the start of trading of the Nifty Options include BNP Paribas, Optiver Australia, Susquehanna International Group and Timber Hill.
“The introduction of Nifty Options on SGX increases the trading opportunities for market participants and is a positive development for the options community. We are confident that Optiver Australia will be a key contributor towards the growth of Nifty Options on SGX,” Mr Daniel Weinberg, Head of Business Development, Asia Pacific, Optiver Australia, said.