SGX, NSE Resume Talks on Possible GIFT City Collaboration

The arbitrator has deferred judgement on the data sharing dispute until talks on collaboration between the two exchanges on a trading and settlement platform at GIFT City conclude.

SGX (Singapore Exchange) and NSE (National Stock Exchange) have resumed discussions on potential collaboration for a joint trading and settlement platform at India’s international financial centre at GIFT City (Gujarat International Finance Tec-City).

The discussion between the two exchanges was put on hold due to an ongoing dispute between the two exchanges after Indian exchanges terminated their data sharing license with the SGX in February. Terminating data sharing would have impacted SGX’s popular Nifty futures contracts. In response, SGX said that it would launch a new derivatives product on Indian equities using publicly available information, which NSE tried to prevent trough legal action.

The dispute was taken to an arbitrator who asked SGX to continue listing SGX Nifty contracts beyond August, when the data sharing agreement was due to expire. In the meantime, SGX was forbidden from offering a new product until a final decision was made.

The arbitrator has now also granted a deferment of arbitration proceedings pending the outcome of the discussion on collaboration at GIFT City, according to a joint statement by SGX and NSE.

India’s markets regulator, SEBI (the Securities and Exchange Board of India) and the MAS (Monetary Authority of Singapore) also held talks on a number of issues relating to bilateral regulatory cooperation including an “amicable resolution” of dispute between the exchanges.

“Both regulators also agreed that NSE and SGX would carry out necessary discussions to come up with a solution that is acceptable to both the parties,” they said in a joint statement.

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