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- SGX further broadens shelf of pan-Asia benchmark equity derivatives
- SGX and CME Group will offer FTSE Emerging Market and FTSE China H50 futures on their Mutual Offset System
Singapore Exchange (SGX) is expanding the scope of its unique Mutual Offset System (MOS) with CME Group, offering global investors unmatched, round-the-clock access to trade and clear on the leading derivatives marketplaces in Asia and the United States.
SGX on 23 November will launch five new regional and single-country futures contracts based on Net Total Return and Price Return indices calculated by FTSE Russell, further broadening its shelf of pan-Asia benchmark equity derivatives.
Of these, the SGX FTSE Emerging Market and SGX FTSE China H50 Price Return futures are planned to be available for MOS from the first half of 2021. The effective date will be announced in due course upon fulfilment of the necessary rule amendment procedures. CME Group and SGX will align the contract specifications on each exchange, enabling international customers to transfer positions from one venue to the other for maximum flexibility and efficiency in managing portfolio risk.
Singapore International Monetary Exchange or SIMEX, which became part of SGX, pioneered the revolutionary MOS alongside the Chicago Mercantile Exchange in 1984. The landmark clearing link has grown to become one of the world’s most successful and longest-running derivatives collaborations between global exchanges.
Michael Syn, Senior Managing Director and Head of Equities at SGX, said, “We are delighted to be standing together with CME Group at the forefront of serving international investors with true round-the-clock trading and clearing. This Mutual Offset System continues to be a unique link offering unrivalled access to our participants. At the same time, the introduction of new products with FTSE Russell further enhances our total Asian waterfront of risk-management solutions.”
Tim McCourt, Global Head of Equity Index and Alternative Investment Products at CME Group, said, “We are pleased to further strengthen our relationship with SGX through the expansion of this Mutual Offset System. This will enhance our offering in terms of providing our mutual customers the platform to manage their overnight risks in an effective and timely manner, and giving them greater access to the combined liquidity of both SGX and CME Group in a single marketplace.”
Waqas Samad, CEO FTSE Russell and Group Director, Information Services, LSEG, said, “This collaboration will enhance global access for investors wishing to the trade and clear Asian equity derivatives outside of the region and bolster liquidity across products. Working closely with SGX, the addition of five new index futures contracts reflects our joint commitment to meeting investor demand for equity derivative and options trading as well as ETFs across Asia Pacific. As highly liquid multi-asset derivatives exchanges, both SGX and CME Group continue to play an important role in the creation of global risk management products centred on FTSE Russell index futures.”
SGX FTSE Equity Net Total Return (NTR) Index Futures launching on 23 November 2020:
- SGX FTSE Emerging Market NTR (USD) Index Futures
- SGX FTSE Japan NTR (USD) Index Futures
- SGX FTSE New Zealand NTR (USD) Index Futures
SGX FTSE Equity Price Return Index Futures launching on 23 November 2020, targeted to be made available for MOS from the first half of 2021:
- SGX FTSE Emerging Market (USD) Index Futures
- SGX FTSE China H50 (USD) Index Futures
