Singapore, India Exchanges are said to abandon trade link talks

(May 28): Singapore Exchange and National Stock Exchange of India have abandoned talks on a cross-border trading link, according to people familiar with the matter, amid a bitter court battle that’s soured an 18-year partnership.

The companies couldn’t reach consensus on issues including timing, regulatory guidelines and the resources required for the project, according to the people, who asked not to be identified because the talks were private. The venture would have seen traders in Singapore buy and sell derivatives on exchanges in the Gujarat tax-free zone known as Gift City. Officials from NSE and SGX declined to comment.

A months-long quarrel between the two exchanges over data and licensing rights escalated last week when NSE sued to stop SGX from launching derivatives based on Indian stocks next month. The dispute, which threatens an alliance that began in 2000, has already heralded the end of Nifty 50 Index futures in Singapore and left international investors hunting for a way to hedge their exposure to one of Asia’s largest markets.

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