SGX To Launch Single Stock Futures On 26 October 2001

Singapore Exchange Limited (SGX) today announced that it will launch 15 Single Stock Futures (SSFs) contracts on 26 October 2001.

These futures contracts will be based on underlying blue chip stocks listed on SGX's securities market. The 15 stocks are:

1. Capitaland Limited
2. Chartered Semiconductor Manufacturing Limited
3. City Developments Limited
4. DBS Group Holdings
5. Fraser & Neave Limited
6. Keppel Corporation Limited
7. Oversea-Chinese Banking Corporation Limited
8. Neptune Orient Lines Limited
9. SembCorp Industries Limited
10. Singapore Airlines Limited
11. Singapore Telecom Limited
12. Singapore Press Holdings Limited
13. Singapore Technologies Engineering Limited
14. United Overseas Bank Limited
15. Venture Manufacturing (Singapore) Limited

Each SSF contract will trade at the same board lot size of 1,000 shares as the underlying stocks. Trading of these contracts will be from 9:00 am to 12:30 pm and from 2:00 pm to 5:00 pm, Mondays to Fridays. The contracts will be cash settled upon expiration on the second last business day of the contract month.

Mr Thomas Kloet, CEO of SGX, said, "With SGX Single Stock Futures, institutional and individual investors will have a versatile financial tool to better manage their investments and maximize their profitability by taking advantage of varying market opportunities. The introduction of SSFs represents a true synergy of our securities and derivatives markets, and we expect to see increased inter-market trading and hedging activities involving these two markets."

"Potential market users of these futures contracts include securities and futures houses, institutional investors such as fund managers and insurance companies and, individual investors and SGX Locals," added Mr Kloet.

The SSF futures contracts will be traded electronically on SGX ETS terminals that are located at SGX and its members' premises. The SGX ETS is accessible globally through Bloomberg and GL terminals, as well as via the internet using solutions developed by independent software vendors such as Easyscreen, GL Trade and patsystems.

Besides the above-mentioned access possibilities, the SSFs contracts are also accessible using the SESOPS terminals located at SGX securities trading members' premises.

SGX has been conducting SSF Brokers' Qualification Programmes for securities dealers and remisiers. It is expected that over 2,000 securities dealers and remisiers will have been trained and qualified to broke in SSFs by the launch date, and this includes the some 400 who are already dually licensed to service their customers in trading equity derivatives products.

SGX has also organised a series of educational investor seminars for the public since 18 August 2001. Thus far, the exchange has seen overwhelming response of its SSFs seminars.