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FIA Seeks Talks With BSE, NSE, MSEI As Indian Indices Stop Trading Abroad

Currently, Indian stock exchanges through a licensing arrangement provide their market data at various levels to index providers for creating Indices

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FIA Seeks Talks With BSE, NSE, MSEI As Indian Indices Stop Trading Abroad
Singapore: Washington-based Futures Industry Association (FIA) said it will seek discussion with Indian exchanges about their decision to stop trading of indices on Singapore and other foreign exchanges, even as SGX stock fell over 7 per cent after the development. Indian stock exchanges -- BSE, NSE and Metropolitan Stock Exchange of India (MSEI) -- on Friday said they will immediately stop the trading of indices of Indian securities on foreign bourses as part of a joint effort to stymie migration of liquidity to overseas markets.

Currently, Indian stock exchanges through a licensing arrangement provide their market data at various levels to index providers for creating Indices. Singapore Stock Exchange (SGX), however, on Sunday said its entire India suite of products, including Nifty, will open and operate per normal on Monday. Shares of SGX dropped over 7 per cent to SGD 7.32 today.

Some 9.2 million shares changed hands, making it one of the most active counters on the Singapore bourse in early morning trade. Analysts have kept their ratings on SGX unchanged on Monday as the stock fell 7.1% amid doubts about the future of the market operator's Indian equity index-linked derivatives, according to Business Times.

Meanwhile, FIA in a statement said, "We look forward to discussing this announcement with the Indian exchanges and working with our members to more fully understand the consequences for derivatives markets and their customers." "We believe that accessible markets are essential for the optimal growth and development of liquidity and allow customers to hedge their risks and manage their exposures in the most efficient way possible," FIA said.

"We have not yet had an opportunity to analyse the implications of this announcement, but it appears likely to disrupt trading on numerous exchanges around the world and alarm international investors," said FIA, a leading trade association for the global listed and cleared derivatives markets.


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