Agreement On Launch Of S&P CNX Nifty Futures In Japan

11/01/2013

Japan Exchange Group, Inc. (JPX) and India's leading stock exchange, the National Stock Exchange (NSE), signed a letter of intent on January 10.2013 on preparing for the launch of S&P CNX Nifty Index futures, a representative stock price index of India, on Osaka Securities Exchange Co., Ltd. (OSE), a subsidiary of JPX.

Moving forward, both parties will make preparations for the listing of yen-denominated S&P CNX Nifty Index futures by March 2014, the integration date of the derivatives markets of OSE and Tokyo Stock Exchange, Inc. (TSE), a subsidiary of JPX. This is the first time that retail and institutional investors in Japan will be able to take a view on the Indian markets in addition to current ETFs, in their own currency and in their own time zone. Investors will therefore not face any currency risk, because they will not have to invest in dollar denominated or rupee denominated contracts.

The letter of intent was signed by Mr. Atsushi Saito, Group CEO of JPX, and Mr. Ravi Narain, CEO and MD of NSE, at a ceremony in Frankfurt.

Mr. Atsushi Saito, Group CEO of JPX said, "We are very pleased to have concluded the letter of intent with NSE, the largest exchange in India which is one of the fastest growing countries in Asia. Investors have been showing increasing interest in India, and JPX and NSE have built a close cooperative relationship, which has already born the fruit of two ETFs that track the S&P CNX Nifty Index listed on TSE. JPX was established as the result of a business combination between TSE and OSE on January 1 of this year, and I am honored to work with NSE in our first cooperative effort with an overseas exchange since the business combination.

Mr. Ravi Narain, Chief Executive Officer and Managing Director of NSE said, "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."