SGX Launches Singapore Single Stock Futures

In response to growing client demand for a broader suite of Singapore-linked equities products, Singapore Exchange (SGX) will launch 10 Singapore Single Stock Futures (SSFs) on 15 June 2020.

The list of underlying securities for the SSFs are Comfortdelgro, DBS, Genting, Keppel, OCBC, Singtel, Thai Beverage, UOB, Wilmar and Yangzijiang Shipbuilding, the bourse announced on Tuesday. Most of these securities are also SGX MSCI Singapore Free Index (SiMSCI) stocks.

SSFs represent a next natural step in the growth of the ecosystem and offer market participants a new shelf of risk management instruments, SGX said, noting that it has observed greater synchronization and correlation between the price of futures and the underlying stocks across various intraday timeframes, indicating growing institutional participation across both markets.

SGX also signed a license agreement for four products on MSCI Singapore indices, including SiMSCI futures and options and net total return contracts, which will continue to be listed on yhe exchange after February 2021.

Our Singapore franchise is at the heart of SGX’s pan-Asian access offering and with these latest developments, we are well on track to broaden the continuum of our equities shelf, Michael Syn, SHX head of equities said in the announcement.

Just last week, SGX said it would discontinue its license agreements with index provider MSCI for equity futures indices and futures contracts when they expire in February 2021. At the same time, MSCI signed an agreement with Hong Kong Exchanges and Clearing (HKEX) to license a suite of its indexes in Asia and emerging markets for the introduction of futures and options contracts in Hong Kong.