BackPM Modi to launch SGX Nifty trade at GIFT City this week
Under the NSE IFSC-SGX Connect, all orders on NIFTY derivatives placed by members of Singapore Exchange Limited (SGX) will be routed to and matched on the NSE-IFSC order matching and trading platform.
PremiumPrime Minister Narendra Modi is set to launch SGX Nifty trade at Gujarat International Finance Tec-City (GIFT City), India’s maiden International Financial Services Centre (IFSC), later this week. Modi will be visiting the GIFT City on July 29 and he will launch NSE IFSC-SGX Connect. He will also launch India International Bullion Exchange (IIBX), India’s first International Bullion Exchange in the GIFT city. Several other key announcements will also be made during the visit. During the occasion, Bhupendra Patel, Chief Minister of Gujarat; Amit Shah, Union Minister of Home Affairs and Co-operation: Nirmala Sitharaman, Union Minister of Finance and Corporate Affairs; Union Ministers of State for Finance Pankaj Chaudhary and Dr. Bhagwat Kishanrao Karad, will also be present.
Under the NSE IFSC-SGX Connect, all orders on NIFTY derivatives placed by members of Singapore Exchange Limited (SGX) will be routed to and matched on the NSE-IFSC order matching and trading platform.
In a statement, the IFSC authority said, the said Connect will deepen liquidity in derivative markets at GIFT-IFSC, bringing in more international participants and creating a positive impact on the financial ecosystem in the GIFT-IFSC.
Broker-Dealers from India and across international jurisdictions are expected to participate in large numbers for trading derivatives through the NSE IFSC-SGX Connect.
Earlier in March this year, IT giant TCS-led TCS BaNCS was selected by the SGX to power the NSE IFSC-SGX Connect (Gift Connect), its program to connect to NSE IFSC, a fully owned subsidiary of the NSE, for trade execution and clearing of Nifty products on behalf of its members in Singapore and globally.
SGX selected TCS BaNCS for its multi-broker, low latency capabilities, to serve as the end-to-end solution for its trading, clearing, settlement, and risk management operations.
As per the TCS statement on March 16, Gift Connect will allow SGX members to place orders on NSE IFSC using FIX/proprietary APIs or through the TCS BaNCS dealing terminal. The solution’s clearing and settlement module will interact with the clearing arms of NSE IFSC and SGX for position and limits management, while also performing all regulatory compliance functions. Using TCS BaNCS’ risk management module, SGX and SGX brokers can define risk rules and profiles, and monitor and control trading activities.
Apart from this, on July 29, PM will launch IIBX which will facilitate efficient price discovery with the assurance of responsible sourcing and quality, apart from giving impetus to the financialisation of gold in India.
"This shall empower India to gain its rightful place in the global bullion market and serve the global value chain with integrity and quality. This also re-enforces the commitment of the Government of India towards enabling India to be able to influence global bullion prices as a principal consumer," the IFSC authority said.
Further, Modi will also lay the foundation stone of the Headquarters Building of the International Financial Services Centres Authority (IFSCA), the unified regulator for the development and regulation of financial products, financial services, and financial institutions in International Financial Services Centres (IFSCs) in India.
The headquarters building of IFSCA has been conceptualised as an iconic structure, reflective of the growing prominence and stature of GIFT-IFSC as a leading International Financial Centre.
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