NEW DELHI: In a major development that will allow Indian investors access to the American market, the country's top bourse NSE has decided to begin trading in futures contracts of Dow Jones Industrial Average (DJIA) and S&P 500 - the two key indices of the US market.
At the same time, Nifty - NSE's benchmark index comprising India's 50 top blue-chip stocks - would be traded on the Chicago Mercantile Exchange of the US.
The listing and trading arrangement for these indices, which are subject to regulatory approvals in India and the US, was announced by National Stock Exchange and CME in a joint statement on Wednesday.
Besides the cross-listing and licensing agreements, the two bourses have also entered into a "memorandum of understanding with respect to other areas of potential co- operation including related to development and distribution of financial products and services."
NSE's affiliate India Index Services and Products Ltd (IISL) has granted exclusive licence for Americas and Europe to CME Group for trading of Nifty 50.
Besides, NSE also announced an agreement to explore listing and trading of more India-linked products on Singapore Exchange Ltd, which already has a licence to trade in Nifty 50.
Commenting on the CME deal, NSE MD and CEO Ravi Narain said: "This association with CME Group will make the Nifty 50, and over time, potentially other products across various India-related asset classes, available to a much larger community of traders and investors."