The London Stock Exchange Group and
National Stock Exchange of India have signed a
letter of intent to explore collaboration, the first fruit of
which is likely to be LSE gaining a licence to offer options on
the S&P CNX Nifty 50 Index.
However, LSE will need to check that it can offer futures as
these are already listed at Singapore Exchange
and CME Group. The exchanges are also
discussing licensing of FTSE indices to the NSE.
Nifty options have been highly successful at NSE, hitting
record volumes this year, but India’s closely
guarded financial markets make it hard for foreign investors to
trade the contracts directly.
Meanwhile, Singapore Exchange has agreed a partnership with
Eurex, in which the Frankfurt exchange will
help to market and promote SGX’s new set of US
dollar-denominated futures and options on the Euro Stoxx 50
Index of leading European stocks.
Plans for the contracts themselves were announced in March,
with launch planned for the second half of this year, subject
to Monetary Authority of Singapore approval.
Far from seeing the SGX move as competition for its own most
popular instruments, which are denominated in euros, Eurex
believes it will raise the profile of the Euro Stoxx 50 in Asia
and hence raise volume in its own contracts.
"Through our cooperation, we extend the user base of
Europe’s most liquid index derivatives contract,"
said Michael Peters, a member of the Eurex executive board.
"This will result in new trading and hedging opportunities
globally and should further increase the liquidity of this
benchmark product. Our partnership will also strengthen our
position in Asia as a global exchange."
Chew Sutat, head of corporate and market strategy at SGX, said:
"The SGX EuroStoxx 50 Futures and Options on Futures contracts
will complement our suite of Asian products, providing global
customers with one-stop access to Asian and European equity
markets as well as trading opportunities between SGX and
The SGX-Eurex and NSE-LSE deals are just the latest steps in
the process of international cooperation between exchanges in
the field of equity index derivatives.
On August 30 Eurex will go live with a link enabling its
members to trade futures on the Kospi 200 Options listed at
Korea Exchange. This will create
round-the-clock trading in the super-liquid
Eurex has also confirmed its
intention to offer futures and options linked to the
Bombay Stock Exchange’s Sensex
index – a rival to the Nifty – from October
Since November CME Group has offered after-hours access to the
Kospi 200 Futures. NYSE Liffe is also
preparing to launch in the fourth quarter of this year futures
on the Topix Index of Japanese stocks, which will be fungible
with those at the Tokyo Stock
SGX has been a leader in cross-border index derivatives
– it offers contracts on the Nikkei 225 Index, Nikkei
225 Dividend Index, S&P CNX Nifty Index of Indian shares,
the MSCI Taiwan, MSCI Hong Kong and FTSE Xinhua China
The SGX Euro Stoxx contracts will be the only ones listed by a
major Asian exchange that reference stocks outside