SGX plunges most in 17 years as MSCI signs pact with HKEX

The move deals a blow to SGX, which considers the Hong Kong bourse one of its main rivals.

Shares in Singapore Exchange Ltd. plunged after MSCI Inc. announced it will move licensing for derivatives products on a host of gauges to Hong Kong from Singapore.

SGX’s stock fell 12%, the most since 2003, amidst concerns over the loss of revenue. MSCI has struck an accord with a Hong Kong Exchanges & Clearing unit to sell 37 futures and options contracts based on its Asian and emerging-market measures, according to a statement issued by the index provider. It will stop licensing indexes for most derivatives products with SGX early next year after the present agreement expires, the bourse said in a separate statement.

The move deals a blow to SGX, which considers the Hong Kong bourse one of its main rivals and has been suffering from a slowdown in listings.

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