The first phase of the rollout will comprise about 40 futures and options contracts
[SINGAPORE] Singapore Exchange (SGX) Group will launch up to 100 new MSCI-linked derivatives under an expanded licensing agreement with the index provider, in a move to strengthen its position as a global derivatives marketplace.
The first phase of the rollout will comprise about 40 futures and options contracts covering major developed and emerging markets.
These include MSCI’s flagship developed market benchmarks, key Asia-Pacific single-country indexes and emerging market Asia sector indexes.
The group did not indicate when the remaining contracts will be introduced.
The expanded suite will give investors more tools to manage equity risk across global markets, said the group in a press release on Thursday (Jul 23). It also reflects how institutional portfolios are now managed across benchmark suites and regions.
The new licensing agreement with MSCI marks “a material broadening” of SGX’s equities derivatives franchise by extending its shelf beyond key Asian exposures to global, regional and sector-specific derivatives, said the group.
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Loh Boon Chye, chief executive officer of SGX Group, said: “As portfolios are increasingly managed across regions, themes and benchmark suites, our comprehensive MSCI suite gives investors a broader platform to manage global equity risk through one trusted venue.”
Shares of SGX ended 0.7 per cent or S$0.16 higher at S$23.70, before the announcement on Thursday.