SGX To Launch Options On China A50 Futures
Singapore Exchange (SGX) aims to launch SGX FTSE China A50 Index options in the third quarter of 2014 to cater to the risk management needs of global investors, and in response to supportive industry feedback. Subject to final regulatory approval, the new contract will be listed as options on the SGX FTSE China A50 Index futures (SGX China A50 futures). Strong industry support and active trading has propelled SGX China A50 futures to become one of SGX’s fastest growing derivatives contracts, hitting a new annual trading volume record of 22 million contracts in 2013. As the only internationally accessible future on China A-shares, the SGX China A50 futures has attracted active participation from global investors like banks, hedge funds, pension funds, proprietary trading firms, asset management companies and individual investors. All in all, SGX FSTE China A50 saw more than US$2 billion worth of open interest as of end December 2013.
“The introduction of the SGX China A50 index options is timely as offshore interest in the China A-share market has picked up substantially and hedging needs from institutional investors and asset managers have become more acute and sophisticated. With the options, our customers will be able to realise and enjoy more trading opportunities and capital savings through portfolio margining”, said Michael Syn, Head of Derivatives, SGX.