SGX shares drop on news of India court filing on derivatives

Singapore two-dollar bills

SGX shares dropped on Tuesday after it said the National Stock Exchange of India (NSE) applied to the Bombay High Court for an interim injunction on its new derivative products.

Shares of SGX were down 2.09 percent at S$7.48 at 11:59 A.M. SGT after being on a trading halt until 10:15 A.M. SGT.

In February, SGX had said it would list successor products to the SGX NIfty product family before August 2018, when the license for the SGX Nifty products expires.

But SGX indicated it would continue with plans for its new products.

“We have full confidence in our legal position and will vigorously defend this action,” SGX said in the statement on Tuesday. “Our clients can continue to trade per normal. Our new India derivative products, which have received the relevant regulatory approvals, will list in June 2018 and allow our clients to seamlessly transition their India risk management exposures.”