The Singapore Exchange (SGX) is set to launch two international real estate investment trust (Reit) futures products, based on indices tracking Reits listed in Singapore, Hong Kong, Malaysia and Thailand. These products will be the first international Reit futures in Asia.
On Aug 24, SGX will launch the SGX FTSE EPRA Nareit Asia ex-Japan Index Futures, as well as the SGX iEdge S-REIT Leaders Index Futures, the bourse said in a Tuesday press statement after market close.
The FTSE EPRA Nareit Global Real Estate Index series is a widely followed global benchmark, with about US$340 billion (S$465 billion) of assets actively benchmarked against or passively tracking the indices. The iEdge S-REIT Leaders Index is the most liquid index-basket representation of the S-Reit market.
Both futures are designed in accordance with Commodity Futures Trading Commission guidelines, which would enable distribution to US and global institutional investors.
Their launch comes amid rising global investor demand for real estate-related investment products and trading solutions. It also "builds on the forte" of the local stock market, following the launch of Singapore Single Stock Futures in June, SGX said.
Mr Michael Syn, head of equities at SGX, said the bourse continues to focus on innovative products that capitalise on its cash equities and equity derivatives businesses.
THE BUSINESS TIMES