"We are aware of the market's wish for certainty with regards an equity index derivatives product. That is why SFE's existing SPI® contract will continue to be listed until September 2001. However, as for an additional product based potentially on one of the new S&P/ASX indices, due diligence demands that SFE be fully informed.
"Since February, SFE has been seeking clarity from ASX and S&P on the possible implications to the SPI® of the change in ownership of ASX's index business. A number of issues remain outstanding. "I have written to S&P seeking to clarify whether any exclusive, restrictive or special arrangements exist between S&P and any other party concerning the use of ASX indices for futures-related products and other index products such as exchange traded funds. Although SFE recognises such arrangements may exist, it is essential they be disclosed prior to SFE making a final commercial decision. Clarity and transparency are in the best interests of SFE and its customers.
"The SPI® is one of SFE's premier products. Last year, futures and options turnover in the SPI® exceeded five million contracts, representing 17% of total SFE business. Because of the SPI®'s importance to both the Exchange and the equity market, it is imperative that SFE has all the facts at its disposal before making decisions about its future. The long-term viability of the contract demands as much."
