SGX to Offer Taiwan Index Futures

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.