Homepage
PR Newswire
22-05-2018, 05:56 PM
Biggest India Stock Exchange Sues Singapore Bourse
By Andrea Tan and Santanu Chakraborty
May 22, 2018, 10:10 AM GMT+8 Updated on May 22, 2018, 1:27 PM GMT+8
The National Stock Exchange of India Ltd. sued Singapore Exchange Ltd. in a Mumbai court, escalating a dispute that threatens to leave international investors without one of the world’s most widely used offshore futures contracts.
NSE is trying to stop its Singapore counterpart from launching derivatives that could replace the Nifty 50 contracts that have traded in the city-state for 18 years. Global funds use these instruments to hedge their positions in one of Asia’s biggest equity markets. Indian exchanges ended agreements that allowed offshore derivatives in February, leaving SGX and others scrambling.
“This is a big mess,” said David Shin, Asia head of global equity derivative sales at TD Securities in Singapore. “I can’t see how SGX would go through with the launch when this is in the air. There’s a lot of gray here, because if investors do trade the new contract knowing this legal case is out there, is there legal liability that cuts through to the investors of the new contracts?”
SGX, which announced the NSE’s legal action in a statement on Tuesday, said it has “full confidence” in its legal position and would “vigorously” defend itself.
More details in https://www.bloomberg.com/news/articles/...t-products
By Andrea Tan and Santanu Chakraborty
May 22, 2018, 10:10 AM GMT+8 Updated on May 22, 2018, 1:27 PM GMT+8
The National Stock Exchange of India Ltd. sued Singapore Exchange Ltd. in a Mumbai court, escalating a dispute that threatens to leave international investors without one of the world’s most widely used offshore futures contracts.
NSE is trying to stop its Singapore counterpart from launching derivatives that could replace the Nifty 50 contracts that have traded in the city-state for 18 years. Global funds use these instruments to hedge their positions in one of Asia’s biggest equity markets. Indian exchanges ended agreements that allowed offshore derivatives in February, leaving SGX and others scrambling.
“This is a big mess,” said David Shin, Asia head of global equity derivative sales at TD Securities in Singapore. “I can’t see how SGX would go through with the launch when this is in the air. There’s a lot of gray here, because if investors do trade the new contract knowing this legal case is out there, is there legal liability that cuts through to the investors of the new contracts?”
SGX, which announced the NSE’s legal action in a statement on Tuesday, said it has “full confidence” in its legal position and would “vigorously” defend itself.
More details in https://www.bloomberg.com/news/articles/...t-products
Specuvestor: Asset - Business - Structure.