It will soon be possible to trade the very popular and liquid S&P CNX Nifty Index (the Nifty 50 , the leading Indian benchmark index) at the Chicago Mercantile Exchange denominated in U.S. dollars and to trade the S&P 500 and Dow Jones Industrial Average indexes in rupees from India.
The National Stock Exchange of India (NSE) and CME Group announced a cross-listing arrangements, including license agreements covering benchmark indexes for U.S. and Indian equities during the Futures Industry Association conference in Boca Raton Fl. on Wednesday.
The license to the Nifty 50 from NSE's affiliate India Index Services & Products Ltd. (IISL), which is exclusive to CME Group within the Americas and Europe, is in addition to the existing licensing arrangement between Singapore Exchange Ltd. (SGX) and IISL according to a press release.
Ravi Narain, MD & CEO of NSE says the Nifty 50 futures trades an average of two million contracts a day, 75% of which is traded from India. The contract is more retail oriented, with an approximate notional value of $5,000.
"Everyone wants a piece of India and what better way than an index, [the Nifty 50] is the country," Narain says.
"Our new partnership with NSE is an integral part of our global growth strategy," added Craig Donohue, Chief Executive Officer, CME Group.
The parties have also entered into a Memorandum of Understanding with respect to other areas of potential cooperation, including related to development and distribution of financial products and services.