SGX Introduces New Asian Index Futures
Investors seeking exposure into ASEAN markets can tap on the Philippines and Thailand index products. 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.
“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