Singapore Exchange’s (SGX) MSCI Indonesia Index Futures will begin trading from 11 June 2012.
The world’s first offshore Indonesian equity futures, the new contract is based on the MSCI Indonesia Index which is a widely followed Indonesian benchmark for institutional investors.
Indonesia’s GDP grew 6.3% for the first quarter of 2012, the second highest growth rate in Asia after China.
“SGX currently offers the widest suite of Asian equity index derivatives. We are confident that the SGX MSCI Indonesia Index Futures provides a unique value proposition to regional and international investors from both portfolio and risk management perspectives,” said Mr Michael Syn, Head of Derivatives at SGX.
SGX has signed up three market makers: Barclays, Credit Suisse and Optiver to provide both on screen and off screen liquidity.
“Credit Suisse is very pleased to be supporting SGX in the development of its MSCI Indonesia Index Futures as one of the pioneer market makers. We believe there is great growth potential for these futures based on the Indonesian market given the strong demand for exposure to Indonesia and the need for a robust hedging instrument. With the inclusion of another key Asian economy in its product suite, SGX is clearly strengthening its position as an Asian Gateway, providing efficient and convenient access to regional markets,” said Mr Manuel Schlabbers, Head of Index and ETF Trading, Asia, Credit Suisse.