SGX Reduces MSCI License Agreement

The bourse said it will continue to broaden and deepen coverage of Asia by developing more derivatives products on its own or in collaboration with its partners.

Singapore Exchange (SGX) will discontinue its license agreements with index provider MSCI for equity futures indices and futures contracts when they expire in February 2021, SGX announced on Wednesday.

The two parties will retain their partnership on MSCI Singapore Index products and will both work to extend it well beyond 2021, the announcement said, noting that MSCI Singapore futures and options remain listed. SGX said it will work closely with the relevant stakeholders in managing their open interest during this period.

While this may have a near-term impact on our equities derivatives open interest, our multi-asset portfolio shelf has reached a critical mass. SGX’s track record in derivatives positions us well to refresh and grow our suite of pan-Asian access products in a new direction, Loh Boon Chye, SGX chief executive, said.