Latest News | NSE IFSC-SGX Connect Launches Negotiable Large Trades

New Delhi, May 16 (PTI) NSE IFSC on Monday said it has introduced Negotiable Large Trades from Singapore Exchange (SGX Group) in GIFT City, marking the commencement of the NSE IFSC-SGX Connect.

This is the first phase in the operationalisation of the NSE IFSC-SGX Connect which is expected to contribute significantly to the development of markets in GIFT City, according to a statement.

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The foundation for the Connect was laid in August 2019 when National Stock Exchange of India (NSE) and SGX Group entered into a collaboration agreement to create a unified liquidity pool for Nifty products in GIFT City, in Gujarat, via an innovative Connect model.

The Connect is expected to go live in July 2022, with the onboarding of SGX Group's members.

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A NLT or Negotiable Large Trades is a privately negotiated large-sized trade at or above a certain minimum volume threshold. The NLT is transacted off the exchange's electronic trading facility but is subsequently reported to the clearing house.

NLTs can be directly negotiated between non-member clients or through their execution broker or inter-dealer broker and then communicated to their respective clearing members.

"Today is a historic moment for NSE IFSC with the commencement of the much-awaited NSE IFSC-SGX Connect. We are committed towards developing GIFT-IFSC as India's premier financial services centre and a gateway for global financial flows," said Vikram Limaye, MD and CEO at NSE.

The NSE IFSC-SGX Connect is a strategic partnership with SGX Group in an innovative, first of its kind structure, and will help develop the exchange and the capital markets ecosystem in GIFT City IFSC, he added.

"SGX Group is excited to see the NSE IFSC-SGX GIFT Connect reach another milestone with this commencement. We look forward to working closely with NSE to start the onboarding of our members to the Connect in July," Loh Boon Chye, CEO at SGX Group said.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)