India International Exchange (IFSC) Limited

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1 NEWSLETTER VOL. 1, ISSUE 3 JUNE 2018 India International Exchange (IFSC) Limited CONTENTS 2 India INX s liquidity across diversified asset class Trading volume crossed 4.1mn lots with cumulative turnover surpassing USD 65.5bn 3 Trade on the INDIA50 Index F&O Hedge your India exposure with INDIA50 Futures & Options 4 Derivatives products snapshot Overview of key contract parameters 5 Tech Insight: Co-lo at India INX - fast track your access Server co-location at India INX s in-house data centre has become the preferred choice of members Median order latency at 4 µs is amongst the best in the industry 6 How does Sponsored Market Access (SMA) work? SMA offered by ISVs using India INX s co-location facility decreases member s infrastructure spend and enables faster access to markets 7 Events update: FIA round table meeting India INX hosts FIA Round table meeting on GIFT IFSC

2 India INX s liquidity across diversified asset class Daily trading turnover peaked at USD 1.04 billion with highest trading volume of 62,222 lots. Average daily turnover & volume Diversified liquidity (In USD million) 105% compounded quarterly growth rate in average daily trading turnover from USD 106 million (Q3 FY18) to USD 447 million (Q1 FY19) Trading across on multi-asset class products - Gold, Silver, Brent Crude Oil, Copper, Equity Indices INDIA50, SENSEX, Single Stock Futures and Currency Progressive liquidity in India INX derivatives Key trade statistics As on July 18, 2018 Cumulative Trading Volume 4.12 million contracts (lots) Cumulative Trading Turnover USD 65.5 billion (INR 449,295 crores) Highest Daily Trading Turnover USD million (INR 6,883 crores) Highest Daily Trading Volume 62,222 contracts (lots) 2

3 Trade on the INDIA50 Index futures & options Hedge your India exposure using INDIA50 Index F&O. Underlying index is based on the top 50 largest and most liquid Indian equity securities. The float-adjusted market capitalisation weighted index has a high positive correlation (99.9%+) with other India-based equity indices increasing hedge effectiveness and efficiency. Price & Volume Graph Key index price drivers Cumulative Trading Turnover on INDIA50 Index F&O is at USD 37 billion since commencement of operations on Jan 16, Growth of the Indian economy Commodity prices & impact on inflation Foreign investments Consumption trends Currency volatility Monetary policy of the central bank Growth in manufacturing and services Seasonal rains / monsoons Political factors Performance of global equity markets Sectoral distribution - Index constituents Underlying Index constituents Did you know? Underlying asset of INDIA50 INDEX F&O Futures and options contracts on S&P BSE SENSEX50 Index shall be renamed as INDIA50 Index effective from July 30, Adani Ports Asian Paints Limited Axis Bank Limited Bajaj Auto Ltd Bajaj Finance Ltd Bharat Petroleum Corp Bharti Airtel Bharti Infratel Cipla Coal India Dr Reddy's Lab Eicher Motors Gail India Godrej Consumer Prod Grasim Industries HCL Technologies HDFC HDFC Bank Hero MotoCorp Hindalco Industries Hindustan Petroleum Hindustan Unilever ICICI Bank Indiabulls Housing Fin Indian Oil Corp IndusInd Bank Infosys ITC Limited Kotak Mahindra Bank Larsen & Toubro Lupin M&M Maruti Suzuki Nestle India NTPC Ltd ONGC Power Grid Corp Reliance Industries State Bank of India Sun Pharma TCS Tata Motors Tata Motors DVR Tata Steel Tech Mahindra Titan UltraTech Cement Vedanta Wipro Yes Bank Zee Ent 3

4 Products Snapshot Key contract parameters of India INX derivatives Futures & Options Contract Size Approx. Contract Value (USD) Contract Months Tick Size (Tick Value) EQUITY INDEX INDIA50 $1 x Index pts $11,450 Monthly SENSEX $1 x Index pts $36,400 Monthly 0.05 Index Point (USD 0.05) 1 Index Point (USD 1) COMMODITIES GOLD 32 troy oz $38,800 SILVER 1000 troy oz $15,250 GOLD KG 1000 grams $43,600 COPPER 1 metric tonne $6,300 ENERGY Jan, Mar, May, Jul, Sep, Nov Feb, Apr, Jun, Aug, Nov Jan, Mar, May, Jul, Sep, Nov Feb, Apr, Jun, Aug, Nov $0.10 per troy ounce (USD 3.20) $0.005 per troy ounce (USD 5) $0.05 per 10 grams (USD 5) $0.50 per MT ($0.50) BRENT CRUDE 100 barrels $7,200 Monthly $0.01 per barrel ($1) CURRENCIES EURUSD EUR 12,500 $14,500 GBPUSD GBP 6,250 $8,200 JPYUSD JPY 1,000,000 $8,900 3 serial months with 3 quarterly contracts for Mar, Jun, Sep, Dec $ per EUR ($1.25) $ per GBP ($0.625) $0.01 per JPY 10,000 ($1) Did you know? INDIA INX products are available on Bloomberg CEM BGC EPRX INX MIC Code: IINX 4

5 Tech Insight: Co-lo at India INX - fast track your access Globally 80% of orders placed by market participants using algorithmic trading software are from data centres at exchanges facilitating server co-location. Leased line access with server at member s premises Co-location of server at INDIA INX s in-house data centre India INX has one of the world s most advanced technology plat form complemented by a state-of-the-art data centre at GIFT IFSC Key benefits of INDIA INX co-lo Median order latency of 4 µs Response time with round-trip latency of 12 µs Fair and equal access to market data by usage of same length cables for all members Faster order execution using algo orders generated from co-lo servers using high speed 10G network Flexibility to integrate proprietary software Collaborate with empanelled ISV or recommend your existing ISV for market access Free rack space at state-of-the-art Tier III compliant data centre Full order book multicast (EOBI) in addition to other supported protocols like MDI, EMDI and NFCAST 24x7 client support Co-location network Empanelled software vendors Greeksoft Technologies Multitrade Softech Automated Trading Softtech Resolute Softtech Lares Softech Click here for further information on ISVs utrade Solutions Symphony FinTech Marlabs Software Thomson Reuters Int l Marketplace Tech Infra utrade products are used by many international institutions with different trading needs. Members can benefit by using our professional services along with state-ofthe-art comprehensive ultra low latency platform to trade in all securities listed at India INX. Also, we offer a comprehensive Risk Management System which can be used in both online and offline mode. Mr. Ashish Grover Co-Founder & CTO, utrade Solutions We make the tools that traders trust to maintain their edge. Because they need speed, reliability and customization, we deliver. We re driven by ideas and possibility, and more importantly, how those become reality. Our industry is relentless, but we know how to leverage change. We anticipate the needs of traders and build for what s next. We thrive on the fast-paced nature of our industry. Mr. Yogesh Purohit CEO, Automated Trading Softech 5

6 How does Sponsored Market Access (SMA) work? SMA is a software distribution model in which applications are hosted by a service provider on its server at Exchange co-lo facility and made available to customers over a network. How does SMA work? Key benefits of SMA Zero capital expenditure on co-lo infrastructure for members Decreased time to access markets Decreased cost of maintenance by servicing multiple clients using centralized algo server at co-lo facility SMA service providers install algo trading application on co-lo server Members connect to SMA server via Internet or Leased Line Algo strategy parameters triggered from member s front-end app Algo on co-lo server generates orders to Exchange trading system through high speed co-lo gateway to minimise latency Orders executed and trade confirmations generated Recommend your ISV (or) If you are an ISV, empanel with INDIA INX today Contact us T: / 3101 E: isv.registration@indiainx.com Click here for setting up your test environment today Our product LARES ATS is designed to provide low latency execution with comprehensive monitoring and control mechanism for executing several strategies. It provides for running of multiple strategies simultaneously, maximizing the organizational objective of reducing transaction cost and trading smartly for optimum profitability. Mr. Brijeshwar Patel Director, Lares Softech We take great pride in our collaborative approach and proven techniques in defining, developing and delivering high impact Financial Trading Software and allowing customization for customer-specific needs. India INX is the first exchange in India that provides users to trade at any time with lowest latency so that your algo will give the best result you expect. Mr. Ashvin Ambaliya Co-Founder & Director, Resolute Softtech 6

7 Events Update: FIA round table meeting India INX hosted the FIA round table meeting on GIFT IFSC on June 07, 2018 at Gandhinagar, Gujarat. Participants included several leading capital market players and banks apart from industry associations and international exchanges and clearing corporations at GIFT IFSC: Bank of America ML Deutsche Bank Goldman Sachs HSBC JP Morgan Morgan Stanley Citibank Edelweiss UBS UOB 7

8 Contact us India International Exchange (IFSC) Ltd. #101, First Level Hiranandani Signature Tower GIFT City IFSC INDIA T: E: bdm@indiainx.com listing.sales@indiainx.com India International Clearing Corporation (IFSC) Ltd. #102, First Level Hiranandani Signature Tower GIFT City IFSC INDIA T: E: membership@indiaicc.com DISCLAIMER By accepting this document, you agree and accept with the representations made herein: The material, logos, trademarks, data, information etc. (including third party data, logos, information etc.) included in this document or forming part of this documents have been compiled for general information purpose ONLY and neither create any legally binding obligation on the part of India International Exchange (IFSC) Limited (hereinafter referred to as the "INDIA INX") and / or its affiliates and/or third party nor reflects any endorsements by INDIA INX. Whilst making all reasonable efforts to provide correct and appropriate information and data, INDIA INX cannot and does not warrant or guarantee that the information and data provided in this document are accurate in every respect. All the information and data made available on this document is provided "AS IS" and "WITH ALL FAULTS", hence without warranty of any kind, other than when expressly provided in this document. INDIA INX does not warrant guarantee or make any representations concerning the use, results of use or inability to use the information available on this document in terms of the timeliness, truthfulness, sequence, completeness, accuracy, reliability, correctness, and performance or otherwise. The user of the information assumes the entire risk as to the suitability, use, results of use, accuracy, completeness, currentness of the information and shall waive any claim of detrimental reliance upon the information. The material and information provided in this document are neither intended to nor constitute an investment advice. While making a decision you should consider both your legal and regulatory position in the relevant jurisdiction and the risks associated with the transaction. By making the information and data available on this document INDIA INX is not acting as your legal, financial, tax or accounting advisor or in any other fiduciary capacity with respect to any transaction, of whatsoever nature. Without limitation, this document does not solicit or constitute an offer, an invitation to offer or a recommendation to enter into any transaction. Through this document, INDIA INX is neither soliciting business, generally or specifically, nor is it directing any work flow or recommendations to the Futures Commission Merchants, the Commodity Pool Operator, the Commodity Trading Advisor and Introducing Broker. INDIA INX its group companies and third parties whom any data, logo, etc. belongs in this documents specifically disclaims all liability for any direct, indirect, consequential or any other losses or damages including loss of profits incurred by you or any third party that may arise from any reliance on this document for the reliability, accuracy, completeness. All rights reserved. All content [texts, trademarks, illustrations, images, graphic representations, files, designs, arrangements and the literary work] on this document of INDIA INX, its group companies and/or third party are protected by the prevailing intellectual property laws, therefore the rights accruing from the same wholly vest with INDIA INX. However users are permitted to use the information by making copies, storing (internally) or reproducing the data provided in this document for their OWN PERSONAL USE and not commercial purposes. All other use, other than the above mentioned shall be considered to be in violation of the terms and conditions and would constitute an offence under the laws of India and the International treaties governing the same. Any dispute arising out of or in connection with the use of the information provided by this document is subject to the exclusive jurisdiction if the courts of Ahmedabad (Gujrat), India and shall be governed by the Indian Law. 8