SGX expands Asian equity derivatives, to launch 13 futures in August, September

THE Singapore Exchange (SGX) on Tuesday said it is "significantly expanding" its shelf of benchmark equity derivatives, with a series of Asia ex-Japan and emerging markets Asia regional and single country futures.

These are based on net total return (NTR) and price return indices calculated by FTSE Russell, SGX said.

The new futures offer benchmarks including Indonesia, Malaysia, the Philippines, Taiwan, Thailand and Vietnam, meeting customers' increasing demand for institutional-grade exchange solutions in Asia, the Singapore bourse added.

According to SGX, there is about US$16 trillion in reported fund assets under management tracking the FTSE Russell benchmarks.

Michael Syn, head of equities at SGX, said: "We are continually delivering innovative solutions to support the growth ambitions of our customers who seek a trusted exchange for access to Asia. The new contracts, derived from FTSE's benchmark Global Equity Index Series, are our next step in further developing and advancing SGX's Asia-access waterfront."

To be launched on Aug 24, the SGX FTSE Equity NTR Index Futures comprise the SGX FTSE Asia ex-Japan NTR (USD) Index Futures, the SGX FTSE Emerging Market Asia NTR (USD) Index Futures, the SGX FTSE Malaysia NTR (USD) Index Futures, the SGX FTSE Philippines NTR (USD) Index Futures, the SGX FTSE Taiwan NTR (USD) Index Futures, as well as the SGX FTSE Thailand NTR (USD) Index Futures.

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Meanwhile, the SGX FTSE Equity Price Return Index Futures, which are denominated in US dollars, are subject to final regulatory process and slated for launch in mid-September. These include the SGX FTSE Asia ex-Japan Index Futures, the SGX FTSE Emerging Market Asia Index Futures, the SGX FTSE Indonesia Index Futures, the SGX FTSE Malaysia Index Futures, the SGX FTSE Philippines Index Futures, the SGX FTSE Thailand Index Futures, as well as the SGX FTSE Vietnam 30 Index Futures.

Some of these latest contracts are expected to be certified by the Commodity Futures Trading Commission, enabling US investors to trade them directly from within the US, the Singapore bourse added.

SGX shares closed at S$8.64 on Friday, down S$0.22 or 2.5 per cent.