In a landmark agreement, India’s largest stock exchange National Stock Exchange (NSE) announced a cross-listing arrangement with the Chicago Mercantile Exchange (CME) Group on Wednesday. This includes license pacts covering benchmark indices for Indian and US equities. The MoU signed by the two on areas of potential cooperation includes development and distribution of financial products and services.
Under the cross-listing arrangement, NSE will be able to create and list rupee-denominated futures contracts on Dow Jones Industrial Average (DJIA) and Standard & Poor’s 500 (S&P 500), while the dollar-denominated futures contracts for Nifty 50 (S&P CNX Nifty Index ) will be made available to CME.
This license arrangement to Nifty 50 is exclusive to CME group for use within Americas and Europe. This is in addition to the existing licensing arrangement with Singapore Exchange Ltd. (SGX).
Ravi Narain, MD & CEO, NSE said, “Our products are traded by institutional investors worldwide, making the Nifty 50 one of the more widely traded global products. This association with CME Group will make the Nifty 50, and, over time, potentially other products across various India-related asset classes, available to a much larger community of traders and investors. At the same time, investors in India will have access to new exchange traded products that reflect some of the world’s most widely traded equity indexes. This will improve portfolio choice for Indian investors by widening the array of assets that they can hold in their portfolios.”
Terry Duffy, Executive Chairman, CME Group added, “These arrangements will allow us to expand on our benchmark equity index product suite and provide our customers with access to a futures contract that is based upon the leading benchmark index reflecting the Indian equity markets.”
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