According to experts, SGX sees higher open interest as the exchange provides hedging opportunity for traders and transaction costs are lower. SGX Nifty futures trade from 6:00-23:30 IST. This provides hedging opportunities for market makers on Indian equity-linked products even after NSE has closed. In fact, more than 15% of SGX Nifty volumes are recorded after India trading hours. As cross-exchange arbitrageurs are fairly active during the trading day, these two instruments are strongly co-related. Secondly, transaction costs for futures on NSE are ~5X greater than those on SGX. Finally, the SGX Nifty instrument is US dollar-denominated and mitigates currency risk and hedging costs, Kotak Institutional Equities said in a recent report.