NSE looking at legality of SGX’S new product
MUMBAI: The National Stock Exchange of India Ltd (NSE) is studying the technical and legal aspects of Singapore Stock Exchange’s (SGX) new product that mimics NSE’S Nifty, two people aware of the matter said.
Indian exchanges, on February 9, decided to bar overseas exchanges from trading in Nifty derivatives, in an attempt to check migration of trades away from Indian exchanges.
Two months later, on April 11, SGX announced a new product that works just like the Nifty index, bypassing the Indian exchanges.
According to one of the two people, NSE’S latest move is to ensure that the SGX product does not violate Nifty trademark rights or the Indian exchanges’ decision to prevent use of data feeds to trade on overseas platforms. “If NSE finds a violation, then the exchange will explore further options such as negotiations, regulatory intervention even an Intellectual Property (IP) infringement case,” this person said on condition of anonymity.
“We are examining the matter and discussing with SGX to better understand the product. Any future course of action will be dependent on our assessment of the situation after getting a full understanding of the situation and it would be premature and incorrect to speculate at this time on what that might be,” an NSE spokesperson said in an emailed response.
Last week, SGX said it will list its new India equity derivative products in June, providing market participants continuity with their India risk management exposures.
It will delist all derivatives contracts, including Nifty futures, which were based on a partnership with the NSE. SGX will use the closing Nifty price to settle its new contracts.