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GIFT Nifty trading hours and other things you should know

GIFT Nifty trading hours and other things you should know

GIFT Nifty: NSE International Exchange IFSC Limited is a subsidiary of NSE based in GIFT City. Stock exchanges operating in the GIFT City are permitted to offer trading in securities in any currency other than the Indian rupee.

SGX Nifty futures a recorded daily average turnover of $3.9 billion and average open interest of $9.6 billion in 2022.   SGX Nifty futures a recorded daily average turnover of $3.9 billion and average open interest of $9.6 billion in 2022.

Did you track NSE IFSC Nifty 50 index futures today? If not, you should. They will give you cue on the direction of the stock market early morning everyday, before trading opens on NSE at 9.30 am IST. Launched on Nifty International Exchange or NSE IX in Gift City, Gujarat, GIFT Nifty derivatives are the rechristened version of SGX Nifty derivatives that ceased to trade on Singapore Exchange on June 30.

At 6.30 am IST, GIFT Nifty started operating on NSE IX. One can visit here ( https://www.nseix.com/ ) to know the current value of Nifty futures trading on the exchange.  These derivatives would keep trading for about 21 hours split between two sessions, which means they would overlap trading hours in Asia, Europe, and the US.

The first session has begun from 6.30 am. It will conclude at 3.40 pm. The second session will run from 4.35 pm to 2.45 am the following morning. This is against SGX Nifty trading on Singapore Exchange that used to trade for 16 hours from 6:30 am IST till 10:30 pm IST.

Brief history

Singapore Exchange, in the past, had licensing agreement with NSE that allowed it to offer trading in Nifty futures and options in Singapore. But NSE ended its licencing pact with the exchange in 2018. Following this, Singapore Exchange announced launch of derivatives products that NSE claimed infringed its intellectual property rights. The dispute reached court and later both the parties agreed to a tie-up in September 2020.

From SGX Nifty to GIFT Nifty

NSE International Exchange IFSC Limited or NSE IX is a subsidiary of NSE based in GIFT City. Stock exchanges operating in the GIFT City are permitted to offer trading in securities in any currency other than the Indian rupee. Accordingly, NSE IX, which started operating in 2017, offers dollar-denominated trading in various products.

With the full-scale transition from SGX Nifty to GIFT Nifty, Singapore Exchange through SGX IFSC India Connect -- a special purpose vehicle company, has started routing all the orders from international clients to NSE IX for trading and execution, with clearing and settlement through NSE IFSC Clearing Corporation. SGX Group’s Derivatives Clearing is acting here as the central counterparty.

To get some perspective, SGX Nifty futures alone generated daily average turnover of $3.9 billion and average open interest of $9.6 billion in 2022. The turnover generated in the offshore market earlier will now be generated onshore in Gujarat’s Gift City. NSE and Singapore Exchange will be splitting revenues. The move will consolidate the liquidity pool for Nifty products in the NSE IFSC exchange and will facilitate access for global market participants in GIFT City.

Unlike domestic stock exchanges where foreign investors had to hedge as investments were in Indian rupee, investments in NSE IX are in dollar terms. Thus, all dollar-denominated Nifty derivatives are now exclusively getting traded on NSE IX.

Who can trade Nifty products at GITY Nifty

As per NSE IX, any trading member Indian or foreign registered or non-registered setting up its office through subsidiary/branch model can start trading in the GIFT Nifty products by taking member ship of NSE IX. There are about five dozen brokers that have set up units in Gift City. They include Motilal Oswal Finsec IFSC Limited, Anand Rathi International Ventures (IFSC), Antique Stock Broking (IFSC), Nuvama Capital Services (IFSC), Geojit IFSC, SMC Global IFSC Private Limited, Bonanza Portfolio (IFSC) Private Limited and Emkay Global Financial Services IFSC. Others included Ashika Stock Broking IFSC Private Limited, Dolat Capital IFSC private Limited, East India IFSC Private Limited and Share India Securities (IFSC) Private Limited, among others. These trading members are entitled to execute trades on their own account as well as on account of their clients.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Published on: Jul 03, 2023, 7:30 AM IST
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