Biggest India exchange sues Singapore bourse to halt products
SINGAPORE / MUMBAI - The National Stock Exchange of India Ltd sued Singapore Exchange Ltd in a bid to halt the launch of its futures contracts in the coming weeks.
SINGAPORE / MUMBAI - The National Stock Exchange of India Ltd (NSE) sued Singapore Exchange Ltd (SGX) in a bid to halt the launch of its futures contracts in the coming weeks.
“SGX has been notified by NSE of an application made in the Bombay High Court for an interim injunction on our new products,” SGX said in a statement on Tuesday (May 22). “We have full confidence in our legal position and will vigorously defend this action.”
The lawsuit is another ratcheting up of tensions between the bourses in India and Singapore, elevating a dispute that’s shredded a partnership of 18 years and left international investors scratching their heads about how to hedge their positions in one of the world’s biggest markets.
NSE Chief Executive Officer Vikram Limaye declined to comment on the matter when reached by phone on Tuesday.
In a surprise announcement in February, India’s national exchanges said they would end all licensing agreements and stop offering live prices to overseas venues. The move drew a rebuke from MSCI Inc and investors, who slammed the move as anti-competitive.
SGX in April announced it would launch India derivatives in June even as it continues to evaluate a venture with NSE in a tax-free trading zone in the subcontinent, known as GIFT IFSC. In its latest statement, the SGX said it’s essential to maintain liquidity in overseas markets to connect international participants to GIFT. BLOOMBERG