The new product will be known as the SPI 200 and will be listed for trading on Tuesday, 2 May 2000. Six contract months will be listed, with the first expiry month being June 2000.
The announcement follows a Board meeting held today.
Rick Holliday-Smith, SFE Chairman, said: "After completing extensive market consultation, including an evaluation of different indices and index providers, the Board of SFE has concluded that the S&P/ASX 200 index is the most suitable index on which to base the new SPI® futures and options contracts.
"SFE has chosen an index that satisfies the market's needs for investibility and transparency, and designed a new SPI® contract that provides for liquidity and continuity in the futures market.
"We are very pleased with the support and commitment expressed to us by Standard & Poor's. It recognised that actively traded derivatives contracts lie at the heart of a successful index industry, and that SFE is uniquely positioned in Australia in this respect. S&P also expressed a willingness to work together with us to explore other listed derivative opportunities. Today's announcement lays the foundation for a solid relationship between SFE and S&P.
"From the beginning of this process, SFE has sought to protect the interests of SPI® users and ensure that none were disadvantaged by the changes brought about by ASX's index business sale and restructure. By listing the SPI 200 in May and having the first expiry month as June, we are providing users of the existing SPI® with a smooth transition period in which to roll their positions from the old SPI® to the new SPI 200. We expect most users to do so.
"Today's decision provides for the continuation of the SPI® as Australia's premier equity derivatives product, allowing users to protect the value of their underlying share investments and gain exposure to the Australian sharemarket."
The SPI® was launched by SFE in 1983 and was the first equity index futures contract listed outside the United States. On average, almost 20,000 SPI® futures and options contracts are traded each day, totalling 17% of SFE's annual turnover.
