Key to this MOU will be the development and provision of a standard PC-based pricing model for the Singapore Dollar Interest Rate Futures contract. This model, available both on diskette and SGX's website, is capable of receiving real-time inputs from information vendors and serves as an effective derivatives pricing tool to all market participants trading the Singapore interest rate yield curve.
Mr Ang Swee Tian, President of SGX said, "We are pleased to formalise our existing relationship with NUS through this MOU. As the derivatives marketplace continues to grow and becomes increasingly sophisticated, the expertise that such partnerships offer will, play a catalytic role to, put in place research and educational tools to meet the industry's needs."
The MOU also provides for the design, development and documentation of a Derivatives Pricing and Hedging Training Computerware. This educational tool, available off SGX's website, simulates actual trading strategies and provides opportunities for interested individuals to familiarise themselves with SGX's derivatives trading products.
Professor Chow Shui Nee, Dean of the NUS Office of Research and Graduate Studies said, "Our University Centre is very pleased to work with the Singapore Exchange on this MOU in providing expertise in derivatives pricing and public education. We have been collaborating with the Exchange for a long time. This MOU will help to cement the ties. In a global financial market where knowledge and new ideas are the growth factors, it makes a lot of sense for the industry to work hand-in-hand with research academia."
Other areas this MOU entails include the co-hosting of regular seminars on financial issues related to the banking and financial industry in conjunction with the Association for Financial Engineering (Singapore) and the development of research articles and papers.
