Singapore Exchange Limited (SGX) is pleased to announce that it will launch the SGX Mini Nikkei 225 Index Futures contract on Monday, 19 November 2007. In addition, SGX will reduce the contract sizes for the SGX Nifty India Index Futures as well as the SGX FTSE/Xinhua China A50 Index Futures contracts on the same day.
SGX Mini Nikkei 225 Index Futures
The SGX Mini Nikkei 225 Index Futures contract is one-fifth the size of the existing Yen-denominated Nikkei Futures contract, making it more affordable in terms of capital outlay and trading costs. A smaller size contract allows market participants more precise hedging and trading.
For investors who actively trade the Nikkei product range, the availability of a mini contract with finer tick size complements the main Yen-denominated contract, and offers arbitrage opportunities. Investors can enjoy fungibility with the main Yen-denominated contract. In other words, positions in the SGX Mini Nikkei 225 Index Futures can be offset against opposite positions in the main Yen-denominated contract. The mini contract also offers retail investors an opportunity to participate in the growing Japanese economy.
The SGX Mini Nikkei 225 Index Futures contract has a current notional value of approximately S$105,000. With a futures contract, investors will only need to put up a small percentage of the value of the contract as margins.
Please refer to Appendix 1 for key trading information on the SGX Mini Nikkei 225 Index Futures contract.
SGX India and China Index Futures
In enhancing its product suite to meet different risk and investment needs of its market participants, SGX will reduce the contract specifications of the SGX Nifty India Index Futures and SGX FTSE/Xinhua China A50 Index Futures to allow greater affordability and tradability of these contracts. With smaller contract sizes, SGX offers participants, ranging from retail to professional traders and institutional investors, a convenient and more cost-effective way to gain exposure to the China and India stock markets.
Please refer to Appendix 2 for key changes to the contract specifications of the SGX Nifty India Index Futures and SGX FTSE/Xinhua China A50 Index Futures.
These product initiatives augment SGX’s ongoing effort to offer wider investment choices to encourage a more vibrant trading community.
Appendix 1Key Trading Information of SGX Mini Nikkei 225 Index Futures
| Contract Size | ¥100 x Mini Nikkei 225 Index Futures price |
| Ticker Symbol: | NS |
| Contract Months | 4 nearest quarter months. |
| Trading Hours | T session 7.45 am - 10.15 am 11.15 am - 2.30 pm T+1 session 3.30 pm - 7.00 pm |
| Trading Hours on Last Trading Day | 7.45 am - 10.15 am 11.15 am - 2.30 pm |
| Minimum Price Fluctuation | 1 index point (¥100) |
Daily Price Limits |
Whenever the price moves by 7.5%, in either direction from
the previous day's settlement price, trading within the price limit of
7.5% is allowed for the next 15 minutes (“cooling-off period”).
Thereafter, an expanded price limit of 12.5% (above or below the
previous day's settlement price) shall apply for the rest of the day.
On the last trading day for the expiring contract, there shall be no price limits following the 15 minutes cooling-off period after the initial price limit (7.5%) has been reached. No price limit shall come into effect during the last 30 minutes before the close of trading on the last trading day for the expiring contract. However, if the cooling-off period should overlap into the last 30 minutes of the trading session, the portion of the cooling-off period which overlaps into the last 30 minutes of trading session shall continue to be in force. |
Last Trading Day |
The business day before the second Friday of the expiring contract month. |
| Settlement Basis | Cash Settlement |
| Final Settlement Price | The Final Settlement Price shall be the Special Nikkei 225 Index Quotation based on the opening prices of each component issue in the Nikkei 225 Index on the business day following the Last Trading Day. |
| Negotiated Large Trade | Minimum 1,000 lots |
| Fungibility Mechanism | Position offset in the ratio of 5 Mini Nikkei 225 futures contract to 1 Nikkei 225 futures contract. |
For more information on SGX Mini Nikkei 225 Index Futures contract, please refer to www.sgx.com/mininikkei
Appendix 2
Key Changes of the SGX Nifty India Index Futures contract (IN) and the SGX FTSE/Xinhua China A50 Index Futures contract (CN)
 |
CN | IN | ||
| Current | New | Current | New | |
| Contract Multiplier | US$10 | US$1 | US$10 | US$2 |
| Minimum fluctuation | 1 point (US$10) |
5 points (US$5) |
0.5 point (US$5) |
0.5 point (US$1) |
| Position Limits | 5,000 | 15,000 | 5,000 | 25,000 |
| Open Interest (Examples of change in outstanding open positions) |
10 lots | 100 lots | 10 lots | 50 lots |
For more information on SGX Nifty India Index Futures contract and SGX FTSE/Xinhua China A50 Index Futures contract, please refer to www.sgx.com/nifty and www.sgx.com/a50 respectively.
