Singapore turns India's Nifty into a giraffe: Bloomberg Gadfly

HONG KONG (Apr 13): Singapore Exchange has announced a new product that an excited hedge-fund manager described to me as the "most brilliant use of finance."

That's an exaggeration, of course, though with a large grain of truth.

SGX will launch three derivative products in June: SGX India futures; SGX India options; and SGX India bank futures. For 29 out of 30 days, these contracts won't be anchored by any underlying security or index; they will be whatever their buyers and sellers want them to be. However, on the last Thursday of the month, they will get settled according to the average of publicly available expiry prices of futures and options on Nifty 50 (and Bank Nifty) benchmarks on the National Stock Exchange in Mumbai and its offshoot in Gift City in the province of Gujarat.

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