SGX Reduces MSCI License Agreement
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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.
Questions & Answers
Q.When will SGX discontinue its agreements with MSCI for equity futures indices and futures contracts?
When will SGX discontinue its agreements with MSCI for equity futures indices and futures contracts?
Singapore Exchange will discontinue its license agreements with index provider MSCI for these products when they expire in February 2021. The announcement was made on Wednesday.
Q.Which specific MSCI products will SGX continue to offer after the license agreement changes?
Which specific MSCI products will SGX continue to offer after the license agreement changes?
The two parties will retain their partnership on MSCI Singapore Index products. MSCI Singapore futures and options will remain listed and they aim to extend this partnership beyond 2021.
Q.What is SGX's strategy for its derivatives business after ending the MSCI license agreements?
What is SGX's strategy for its derivatives business after ending the MSCI license agreements?
SGX plans to broaden and deepen coverage of Asia by developing more derivatives products on its own or with partners. It aims to refresh and grow its suite of pan-Asian access products.
Q.How does SGX believe this change will affect its equities derivatives business in the short term?
How does SGX believe this change will affect its equities derivatives business in the short term?
SGX acknowledges this change may have a near-term impact on its equities derivatives open interest. However, it believes its multi-asset portfolio shelf has reached a critical mass.
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