Updated April 20th, 2024 at 16:40 IST

NSE IX receives SEC class relief, allowing US clients to trade equity index options

This class relief from the SEC permits NSE IX members to facilitate trading of equity indices at NSE IX through interactions with approved broker-dealers in US.

Reported by: Business Desk
NSE IX SEC class relief | Image:NSE
Advertisement

NSE IX SEC class relief: The National Stock Exchange International Exchange (NSE IX) has been granted class relief by the US Securities Exchange Commission (SEC), enabling US clients to engage in trading Equity Index Option Contracts on the platform, according to a recent statement.

This class relief from the SEC permits NSE IX members to facilitate the trading of equity indices at NSE IX through interactions with approved broker-dealers and financial institutions in the United States. Additionally, eligible broker-dealers and large financial institutions based in the US are now authorised to trade these index derivatives options contracts through NSE IX members, subject to adherence to relevant regulations, as outlined in the statement released on Friday.

Advertisement

NSE IX, established as an International multi-assets exchange in June 2017 at GIFT City, is recognised by the International Financial Services Centre Authority (IFSCA). This latest development underscores the exchange's commitment to fostering global participation in its offerings, particularly in equity derivatives trading.

Previously, in November 2020, NSE IX made history as the first International Exchange in Gift City to secure an exemption under part 30 by the Commodity Futures Trading Commission (CFTC). This exemption empowers NSE IX members to engage in trading futures derivatives for US clients. Notably, these exemptions enable NSE IX members to accept funds directly from US clients for trading in futures and options contracts on the exchange without the need for the members to register with the CFTC and SEC as a futures commission merchant or SEC member, respectively.

Advertisement

(With PTI inputs.)

Advertisement

Published April 20th, 2024 at 16:40 IST