SGX to Offer Taiwan Index Futures
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The bourse said this will help global investors to gain exposure to a broad representation of large and mid-cap Taiwan stocks, while meeting fund managers’ diversification objectives.
Singapore Exchange (SGX) will launch a futures contract based on the FTSE Taiwan RIC Capped Index (FTSE Taiwan) on July 20, it announced on Wednesday.
The index is broad-based and diversified, and covers nearly 80 percent of Taiwan’s listed companies by market capitalization, providing strong correlation with other major Taiwan benchmark indices, SGX said.
Michael Syn, Head of Equities at SGX, said that the future contract aims to cater to the rising demand from U.S. and European investors for access and investment exposure to Taiwan.
Taiwan is the seventh-largest economy in Asia and occupies a key position in the global industrial and technology value chain.
SGX expects to receive certification from the Commodity Futures Trading Commission to offer the contract in the U.S. shortly after launch.
Questions & Answers
Q.What is the primary purpose of launching this new futures contract?
What is the primary purpose of launching this new futures contract?
SGX stated that the contract aims to help global investors gain exposure to a broad range of large and mid-cap Taiwan stocks, while also meeting fund managers' diversification objectives for their portfolios.
Q.When will this new futures contract become available?
When will this new futures contract become available?
Singapore Exchange (SGX) announced on Wednesday that it will launch the futures contract based on the FTSE Taiwan RIC Capped Index on July 20, making it available for trading from that date.
Q.What proportion of Taiwan’s listed companies does the FTSE Taiwan index cover?
What proportion of Taiwan’s listed companies does the FTSE Taiwan index cover?
The FTSE Taiwan RIC Capped Index is described as broad-based and diversified. It covers nearly 80 percent of Taiwan’s listed companies when measured by their total market capitalization.
Q.Which investor groups are expected to benefit most from this new contract?
Which investor groups are expected to benefit most from this new contract?
Michael Syn, Head of Equities at SGX, stated that the new futures contract is designed to meet the increasing demand from both U.S. and European investors seeking access and investment exposure to Taiwan's market.
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