Market participants in Mumbai have told Futures and Options Intelligence that the National Stock Exchange of India’s agreement with CME Group could make its already commanding lead in Indian equity derivatives unassailable.
CME and NSE agreed yesterday (March 10) to a licensing agreement under which each will be able to use the other’s flagship equity indices.
NSE will allow CME to use its S&P CNX Nifty 50 index to create dollar-denominated futures. In return, CME will permit NSE to offer futures in rupees on the S&P 500 and Dow Jones Industrial Average indices.
CME will list two products: Mini S&P CNX Nifty Futures, worth $10 times the index value (currently about 5,100), and a Micro version, with a multiplier of $2.
The exchange expects the...