SGX to introduce FTSE Taiwan Index futures

This is said to enable global investors to gain exposure on Taiwan stocks.

Singapore Exchange (SGX) is introducing a futures contract on the FTSE Taiwan RIC Capped Index (FTSE Taiwan), according to an announcement. This is said to enable global investors to gain exposure to a broad representation of large- and mid-cap Taiwan stocks.

The SGX FTSE Taiwan Index futures contract will be launched on 20 July and is expected to receive certification from the Commodity Futures Trading Commission for the offer and sale of the contract in the US, ensuring broad distribution to institutional investors.

SGX head of equities Michael Syn said that international investors own some 40% of Taiwan’s equities, making its market an important part of any Asian investment portfolio.

“We are glad to work with FTSE and our partners to meet the rising demand of US and European investors for access and investment exposure to Taiwan, with consistent diversification to manage risk,” he added.

SGX notes that the broad-based and diversified FTSE Taiwan index with a capping methodology covers nearly 80% of Taiwan’s listed companies by market capitalisation, and offers strong correlation with other major Taiwan benchmark indices.

Further, the FTSE Taiwan Index futures contract will provide global investors with an effective and cost-efficient way to invest in the Taiwan stock market, round-the-clock across Asian, European and US time zones.