SGX Plans Series Of Japan Initiatives - MSCI Japan Index Futures On 15 May - Euroyen Options To Be On Mutual Offset With CME

Singapore Exchange Limited (SGX) today announced its plans for a series of Japan-related initiatives. These include the launch of MSCI Japan Index futures on 15 May 2002, and the introduction of Euroyen options on SGX's Mutual Offset System (MOS) with the Chicago Mercantile Exchange (CME) later in the year.

To be traded on the SGX Electronic Trading System (ETS), the MSCI Japan Index futures will complement the highly successful, floor-traded Nikkei 225 Index futures by providing new trading, hedging and arbitraging opportunities. At the same time, it will facilitate risk management for Japan equity investments that are benchmarked against the MSCI Japan Index.

The addition of Euroyen options to the MOS will meet market demands for greater cost efficiency in using the instrument for round-the-clock trading and hedging. The MOS between SGX and CME is the world's first, and most successful trading link for derivatives, and currently provides fully fungible trading and clearing of Eurodollar futures, Euroyen futures and Japanese Government Bond futures across the two time-zones.

These two initiatives join a host of other announcements by the exchange to develop Japan-related products and markets, including:-

• launch of full-sized Japanese Government Bond futures on 18 April
• signing of agreement with Tokyo Commodity Exchange (TOCOM) on 3 April 2002 to launch Middle East Crude Oil (MECO) futures on SGX
• introduction of serial month contracts for Nikkei 225 Index futures on 4 March 2002
• signing of agreement with Tokyo Stock Exchange (TSE) on 1 October 2001 to pursue a strategic alliance

Mr Thomas Kloet, CEO of SGX said, "These initiatives are consistent with our strategy to grow our markets by meeting market participants needs with relevant products and enhanced access. They are especially timely in the light of the recently-signed agreement between Japan and Singapore for economic partnership, which will foster the growth of business, trading, arbitraging and risk management activities involving the two countries' markets."