End of SGX Nifty!


#23

@TraderVenk
Both the analogies you are drawing here are on different tracks - comparing apples with oranges.

You mentioned about a cab driver using a PUBLIC road in his own style. Its on a public field open for everyone, not on a private land.
You also mentioned about American inventions. Nobody is denying that those things are gamechangers, but they were imported and continue to be part of life. America charges for everything - try getting a patented drug from the US. Secondly, America is not complaining that India has made more money from those things. In case of SGX, it is making more money than NSE which is the real issue.

To draw parallels:
A better comparison to make is your parking space, or your lawn. If your neighbor starts parking his car (fully/partially) in your parking space, or in your lawn, that will deprive you of your benefit that you are entitled to (like parking your own car in your own space).
Secondly, say he pays you a small rent for legally using your parking space/lawn, but then starts collecting more rent from other players by sub-letting to park other cars. You will be at a loss in both the cases.

That is what is happening with SGX Nifty. Despite the SGX paying a paltry licensing fee to NSE, they are making more money by attracting more market activity. (similar to case 2 above). That’s why you need to protect your turf.


#24

Good to hear different point of views. My analogies were more for fun. Even if u take it seriously, consider this:
Americans gave their inventions to their world so that they can control and rule the world. Example they gave you windows but they can also have a back door, they gave you smartphone and they can also listen to any body’s conversation in the world (happened to their closest ally Angela merkel, German chancellor). So its about control where US progress and every one else progress but US remains in control.

The guy who is driving in PUBLIC road in his own style also want to exercise control over a scarce resource (actually scarce economic resource) by preventing others getting ahead. In this process neither he reaches the destination on time nor allows others to do it. A very useful and successful and patented Indian style to ensure equality. U know… Everyone reaches destination at same time. U see… Equality, Socialism


#25

Exactly what i have been saying here in this thread. FIIs will very easily move to OTC products to hedge their Indian exposure.

& SGX has made it more than clear. They may actually offer a system of competitive bid based trading for such OTC products.

Result NSE & India will loose their leverage. SGX will be free to do the business.

Indian govt can only squeeze / destroy innocent retail traders with all kind of taxes and charges & restrictions on forex trading etc. They cant intimidate FIIs.


#26

NSE & OTHER Exchange moves are taken very positively by the market . (Stock price of Singapore Exchange was down by 7% ). Going forward this action will help Indian market much more and brings more liquidity to Options. For the 1st time Exchanges & SEBI are moving in a right direction


#27

Update

MSCI in a press release yesterday called the move to end data licensing agreements by the Indian exchanged “Anti-Competitive”.

Quoting from the press release

In a clearly negative development for the accessibility of the Indian equity market for international institutional investors, the exchanges’ announcement made on February 9, 2018 would impose, following the expiration of contractual notice periods, a set of restrictions on the use of traded price data inconsistent with the practices of any other market in MSCI’s Emerging Markets Index series and could result in an unprecedented disruption of trading in financial products in markets around the world.

Here is the link to the press release.


#28

This kind of press release is laughable, these people wants take out our cake & denying our rights , If it happened to be China case , these people would have tendered apology , Its like " chor dante ulta police ko "


#29

@TIMEFRAME
Very valid point, at how global organizations behave differently in different markets.


#30

I THINK the Government is trying to easy the Norms in India Only


#31

If the government/sebi was worried about liquidity why did they grant sgx license in the first place?


#32

Latest update

SGX announced today that it will list successor products to its SGX Nifty family of products before August 2018. This will provide market participants with the same ability to invest and maintain their risk exposure to the Indian capital markets. Market participants will be able to transition seamlessly to these products before the expiry of SGX’s licence agreement with the National Stock Exchange of India (NSE).

In the meantime, the SGX Nifty family of products can continue to list, trade and clear uninterrupted on SGX until August 2018 at a minimum, supported by the current licence agreement with NSE.

Concurrently, SGX will continue to work with NSE to develop a link that will allow international market participants to trade on NSE’s International Exchange (NSE IFSC Limited) in Gujarat International Finance Tech (GIFT) city – International Financial Services Centre, while managing their clearing exposures through SGX. SGX believes that such a link will increase participation in GIFT and on SGX.

“As a market operator, we have an obligation to our international clients to provide them with solutions to manage their risks. Our successor products will provide certainty and continuity for our clients. At the same time, we continue to work with NSE to create a larger pool of liquidity comprising international and home market participants,” said Michael Syn, Head of Derivatives, SGX.

Details of the successor products and progress on the link will be communicated by March 2018.


#33

Now SGX is desperate, so they are trying to create new ,Indian market related products, as @bhaveshbigb posted , P-Note is coming back to ( back door entry) GIFT . Chances of Derivative liquidity will improve


#34

MSCI in response to the move by Indian bourses to end data licensing agreements with foreign exchanges/platforms said that it is considering cutting the weight of India in its Indices. Nilesh Shah, MD, Kotak AMC in a letter has called out the hypocrisy of MSCI and it’s purported double standards when it comes to its treatment of India vis-à-vis other countries. The letter makes for an interesting read -


#35

Mr Nilesh Shah has done a fantastic job , supposed to be a job of Responsible/ Patriotic Indian Journalist. His views & points are absolutely right. we should support & appreciate him, ( personally i don’t like Fund managers , but he is the exceptional to me) . but Indian media is indulging in spreading fear ,continue to play the MSCI card. One of the India’ s main enemies are its media only , From centuries India being a defensive player , but world respects strength & aggression , recent example is “Dokalam standoff” Indian Army’ strength /aggressive posture made Chinese nervous . So its the time to look inside rather than outside


#36

Update

Amidst the cacophony of noises, NSE, BSE and MSE put out a joint press release assuring the foreign exchanges and platforms of an orderly transition in the wake their move on Feb 9th to end data licensing agreements. Here is the joint statement by the Indian exchanges

Further to the press release dated February 9, 2018, there have been
discussions/meetings with several exchanges, data vendors, index providers, market participants
and investors to provide clarifications related to the announcement dated February 9th.

This is to reassure all stakeholders that the Indian exchanges will work with them to facilitate an
orderly transition that is not disruptive to the markets and stakeholders. This engagement with
various stakeholders will continue in the coming weeks to address any concerns.

Further, Indian exchanges will continue to work with the regulators to further enhance the
attractiveness and competitiveness of the Indian markets for accessing and trading India related
products. There have been some announcements in this regard in the recent past in the Union
Budget and by SEBI.

Link to the press release.


#37

SGX To Migrate All Nifty Positions To New Indian Derivatives From June 4

After going through the article , it seems that SGX is also introducing Nifty Index E_MINI contracts, so is there any chances of NSE is reintroducing Nifty Mini contracts ? if yes , Mini Nifty contract will be a boon for retail traders !! :slightly_smiling_face:


#38

So is sgx nifty futures trading going to continue?


#39

Exactly what i expected. India govt can show their prowess and power only to comman man and retail traders. Pathetic…


#40

Pathetic Govt.
Can’t do anything right.

I seriously wonder why I continued staying in this country!
Now I understand why brain-drain happens!


#41

Yes, very much by OTC products.
Infact, SGX need not pay royalty/licensing fee to NSE now, so that’s even more income for them and less income for us.


#42

One Good reason to stay back where you belong to is:

When you walk down the streets of India, no one asks you for your passport or you don’t need to convince others you actually belong here. :slight_smile: