Several of the world’s largest market makers, around 5-10, are gearing up to trade GIFT Nifty futures from GIFT City in India. The president of Singapore Exchange Ltd. has confirmed that these market makers are in the process of registering their offices.
The national value of Nifty 50 Index futures has increased to $11 billion, up from $9 billion during the migration period. However, SGX’s recent results for the six months ending December revealed a nearly 40% drop in volumes for Nifty 50 Index futures and options compared to the same period last year.
As of November 20, there were 22 SGX clearing members supporting Nifty derivatives trading through GIFT Connect. Additionally, NSE International Exchange boasts 50 active members capable of trading these products.
According to Syn, systematic traders who previously traded SGX Nifty are expected to transition to GIFT City. He also foresees interest from the substantial number of traders already active on BSE Ltd., formerly known as the Bombay Stock Exchange.
As the regulations for Algo Trading are also undergoing revisions, it will be interesting to see how the overall Algo/Systematic Trading environment in India is going to evolve.
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Article reference: Global Algo traders set to swarm India stock futures, SGX says
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