S&P CNX Nifty Futures to be Traded on CME From July 19, 2010
National Stock Exchange of India Limited is pleased to inform about the commencement of trading of S&P CNX Nifty Futures on Chicago Mercantile Exchange (CME) from July 19, 2010. In March 2010, NSE and CME had announced cross-listing arrangements including license agreements covering benchmark indexes for U.S. and Indian equities.
Under the cross-listing arrangements, the S&P CNX Nifty Index (Nifty 50), the leading Indian benchmark index accounting for 22 sectors of the Indian economy, has been made available to CME for the creation and listing of U.S. dollar denominated futures contracts for trading on CME. The license to the Nifty 50 from NSE’s affiliate India Index Services & Products Ltd. (IISL) which is exclusive to CME group within the Americas and Europe, is in addition to the existing licensing arrangement between Singapore Exchange Limited (SGX) and IISL.
From July 19, 2010, CME is introducing two new contracts designed to access India’s market opportunities viz. E-mini and E-micro S&P CNX Nifty (Nifty 50) futures. The contract size of E-mini contracts will be 10$ into the value of the Nifty index on that day and the E-micro contracts will be 2 $ into the value of the Nifty index on NSE on that day.
These contracts will be traded on the CME Globex platform, providing access to participants around the world. Investors can trade for nearly 23 hours on CME Globex. These hours include the market hours in India (except the last one hour before the Indian market opens). These two new contracts are intended to give investors a more efficient means to gain exposure to India-related asset classes. They can also trade the contracts to hedge their risks from existing exposure to the Indian stock market Further, CME and SGX are extending their existing mutual offset arrangement to include the S&P CNX Nifty futures contract whereby investors can initiate a position at CME or SGX and offset it at the other exchange.
Managing Director & CEO, NSE Ravi Narain says’’ – “The introduction of these two new contracts will make the Nifty 50 available to a much larger community of traders and investors across various exchanges and time zones “This will also go a long way in realizing our vision of making Indian financial products available globally”