S&P Launches S&P CNX Nifty Futures Index

Following the leading index for large-cap companies on the National Stock Exchange of India, the new S&P CNX Nifty Futures Index is an India country index based on the concept of an index tracking a futures contract. The Index is based on the front month contract traded on SIMEX (Singapore Exchange Ltd). Roll occurs over a three-day period from the third business day prior to expiration to the first business day prior to expiration.

The S&P CNX Nifty is the headline index on the National Stock Exchange of India Ltd. (NSE), owned and managed by India Index Services & Products Limited (IISL), a joint venture between NSE and CRISIL Ltd. It is a diversified 50 stock index comprising large and highly liquid securities, covering 25 sectors of the economy. The Index was created for those interested in trading and investing in Indian equities.

“The S&P CNX Nifty Futures Index was created for international investors seeking an efficient way to gain exposure to the performance of the fast-growing Indian economy and equity market,” says David Blitzer, Managing Director and Chairman of the Index Committee at S&P Indices. “The Index is also designed to serve as the basis for tradable products, opening an important portal for global investors into the Indian market.”

The S&P CNX Nifty Futures Index offers a family of indices in SEK, CHF and EUR, with hedged versions for each. It is designed to serve as the basis for tradable products, particularly OTC. The index family consists of the following indices:

·         S&P CNX Nifty Futures Index

·         S&P CNX Nifty Futures SEK Index

·         S&P CNX Nifty Futures SEK Hedged Index

·         S&P CNX Nifty Futures CHF Index

·         S&P CNX Nifty Futures CHF Hedged Index

·         S&P CNX Nifty Futures EUR Index

·         S&P CNX Nifty Futures EUR Hedged Index

·         S&P CNX Nifty Futures Risk-Control Index 

Simultaneously S&P Indices will be offering risk control versions of the S&P CNX Nifty Futures Index. This allows investors to limit volatility by replacing equities with a cash component if volatility levels exceed a specified level.  The risk control versions will be for 10%, 12%, 15%, 18%, 20% volatility levels denominated in USD, EUR, SEK, and CHF.