Japan’s Osaka Securities Exchange Outlines Finer Details of New Indian Stock Index Contract

India’s position as a global player in financial markets has been strengthened through the offering of its main stock index (Nifty) on an overseas Exchange . Japan-based Osaka Securities Exchange has confirmed a live date for the trading of onshore Indian index futures, and has given contract specifications in a notification on its website.

Regional financial hubs such as Singapore and Dubai have been waving the Indian flag in an attempt to attract overseas traders looking for Indian products. Overseas firms looking to invest face numerous difficulties as the government wants to limit speculation in its main instruments.

Under the Osaka Securities Exchange, the Nifty will gain access to a large Japanese trader base. Furthermore, the launch date of March 2014 ties in with the merger between the Osaka Exchange and the Tokyo Stock Exchange to form the Japan Exchange Group.

The Osaka Exchange has been working closely with India’s National Stock Exchange (NSE) to work out intricacies of the new contract. The CNX Nifty Index contract will be based on the benchmark NSE contract.

Mr. Ravi Narain, Chief Executive Officer and Managing Director of NSE, spoke about the launch of the new contract in a statement to the press: "Yen denominated S&P CNX Nifty Index futures contracts will help investors in Japan to effectively diversify their portfolios in their own currency. This new contract will help small investors as well as large asset management companies to take a view on a high growth market like India and reap the benefits of a globally diversified portfolio. We are honored that it will be the first major contract that the combined JPX group will launch, and wish them every success."

Outline of Trading

• Trading Hours (JST):

From 9:00 a.m to 3:15 p.m. and 4:30 p.m.to 3:00 a.m. the next day

• Contract Months:

3 nearest serial contract months

• Contract Size:

JPY 100 multiplied by the index point of CNX Nifty

• Tick Size (Minimum Price Intervals):

1 point

India launched currency futures in dollar/rupee contracts in 2008. The main exchanges expanded their product range to include GBP, EUR and Yen cross in January 2010. Trading on the new yen denominated contract is expected to open up interest in the JPY INR cross.