SGX to Expand Equity Derivatives Shelf
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The bourse is adding 13 Asia ex-Japan and emerging markets Asia regional and single country futures to its shelf of benchmark equity derivatives.
The new futures are based on Net Total Return (NTR) and Price Return indices calculated by FTSE Russell, which has approximately $16 trillion in reported fund assets under management (AUM) tracking its benchmarks.
SGX said the benchmarks of the new future, which cover Indonesia, Malaysia, Philippines, Taiwan, Thailand, and Vietnam, addresses customers’ «increasing demand for institutional-grade exchange solutions in Asia which offer superior operational and capital efficiency.»
The new contracts are expected to be certified by the Commodity Futures Trading Commission (CFTC), enabling US investors to trade them directly from within the U.S.
SGX currently has the largest and most liquid FTSE and MSCI equity index derivatives for Asian markets.
Michael Syn, head of equities at SGX, said its collaboration with FTSE Russell is the «next step in further developing and advancing SGX’s Asia-access waterfront.»
«We look forward to bringing investors even more asset-class opportunities within the pan-Asian capital structure, based on broad strategies, sectors, and themes,» Syn said.
Questions & Answers
Q.What types of new equity derivatives is SGX adding?
What types of new equity derivatives is SGX adding?
SGX is adding 13 new Asia ex-Japan and emerging markets Asia regional and single country futures. These new futures are based on Net Total Return (NTR) and Price Return indices calculated by FTSE Russell.
Q.Which specific countries' markets will these new futures cover?
Which specific countries' markets will these new futures cover?
The new futures will cover markets in Indonesia, Malaysia, Philippines, Taiwan, Thailand, and Vietnam. This expands SGX's offerings in key Asian emerging economies.
Q.How will these new contracts benefit US investors?
How will these new contracts benefit US investors?
The new contracts are expected to be certified by the Commodity Futures Trading Commission (CFTC). This certification will allow US investors to trade them directly from within the United States.
Q.What is the stated reason for SGX expanding its equity derivatives offering?
What is the stated reason for SGX expanding its equity derivatives offering?
SGX stated it addresses customers' increasing demand for institutional-grade exchange solutions in Asia. These solutions offer superior operational and capital efficiency for investors accessing Asian markets.