In an interview conducted in Singapore, Michael Syn, the President of Singapore Exchange Ltd (SGX), revealed that between five to ten major market makers, specializing in systematic trading, are making preparations to enter into trading India equity futures from the Gujarat International Finance Tec-City (GIFT) in the latter half of 2024.
Syn highlighted that these market makers, utilizing pre-defined rules and mathematical models to drive their trading decisions, are expected to reinvigorate the GIFT Nifty futures. This expectation arises as the trading volumes for GIFT Nifty have decreased since its shift onshore.
The inclusion of these global algorithm traders is perceived as advantageous for the Indian stock market, potentially enhancing liquidity and establishing a more robust trading environment. Their expertise in systematic trading is anticipated to bring dynamism to the India equity futures market, stimulating increased investor interest and participation.
This significant development reflects India’s determined efforts to position itself as a leading financial hub in the region, attracting high-caliber international market players. The involvement of these market makers not only indicates confidence in the potential of the Indian market but also highlights the strategic significance of GIFT as a financial centre.
As GIFT continues to solidify its status as a premier financial hub, its allure as an appealing destination for international market players grows stronger. The entry of these global algorithm traders is expected to further enhance GIFT’s reputation and strengthen its position in the global financial landscape.
It is important to note that the cautious optimism surrounding the entry of these market makers stems from the prospective revitalization of GIFT Nifty futures, following a decline in trading volumes after the transition to onshore trading. The arrival of these global players is anticipated to inject vitality into the Indian stock futures market, potentially creating new opportunities for investors and traders alike.
The impending arrival of these global algorithm traders is evidence of the increasing appeal and potential of the Indian financial market. It reaffirms the country’s dedication to fostering a conducive and competitive trading environment, capturing the attention of esteemed market players from around the world.
With the strategic convergence of international market makers and the burgeoning Indian financial landscape, an exciting chapter in the evolution of India’s stock futures market is set to unfold. The inclusion of global algorithm traders not only bodes well for the development of GIFT as a financial centre but also underscores the promising prospects of India’s financial market on the global stage.
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