The agreement is in line with SGX's plans to further develop its electronic trading market to complement its active open outcry trading. The exchange is therefore considering the possible listing of its Nikkei 225 Futures contract and/or a Mini Nikkei 225 Futures contract on the SGX ETS. In order to facilitate trading and arbitraging opportunities, the Nikkei contracts to be listed on the ETS will be made fungible with the existing floor-based Nikkei Futures contract to allow offsets of equivalent positions in both markets.
In view of the successful trading of the Nikkei 225 Futures on open outcry, the exchange will also continue to trade this contract on the trading floor.
Mr Ryoki Sugita, President of NKS, said, "We value the relationship we have been enjoying with SGX since Nikkei Futures was first launched in 1986. This agreement signifies our commitment to developing the Nikkei business, together with SGX and in line with technological changes."
Mr Ang Swee Tian, President of SGX, said, "We are very pleased to have reached this agreement with the NKS. It is another milestone in the excellent long-term relationship we have with NKS and marks an important step in growing our international market for Nikkei 225 and other derivatives products."
