SGX introduces 3 new Asian Index Futures

Expands access into region's key markets.

Singapore Exchange (SGX) has introduced three new Asian Index Futures to provide investors wider access to almost all of Asia’s key capital and growth markets.

The new contracts, namely the SGX-PSE MSCI Philippines Index Futures, SGX MSCI Thailand Index Futures and SGX MSCI India Index Futures, complement SGX’s extensive suite of equity derivatives offerings. In addition, it provides global investors deeper and more extensive reach into Asia's emerging markets.

The three new contracts will commence trading from 25 November 2013.

SGX said investors seeking exposure into ASEAN markets can tap on the Philippines and Thailand index products. The exchange cited how ASEAN is a growing proportion of global asset portfolios, currently representing 19% of the MSCI AC Asia Ex Japan Index.

"In the medium term, these economies offer huge demographic and capital market potential and opportunities. As the preferred one-stop risk management centre, investors rely on SGX for greater convenience, ease of access, cost efficiency and compliance with high regulatory standards. The quanto feature (USD-denominated contracts) will also guard customers from having to deal with multiple onshore currencies," said SGX.

“As an offshore hub, SGX is facilitating the flow of global capital into Asia. As these market exposures are currently being traded in the over-the-counter market, the offering of exchange listed Futures will help foster greater market transparency and price discovery. There will also be reduced bilateral counterparty risks for the exchange-listed contracts, backed by robust risk management and market surveillance frameworks of the SGX clearinghouse,” said Mr Michael Syn, Head of Derivatives at SGX.

For both on screen and off screen liquidity, SGX has secured participation from leading market makers including Barclays Capital Securities Limited, Goldman Sachs Futures Pte Ltd and Virtu Financial Singapore Pte Ltd.