SGX to launch Asian currency futures, options on China A50 futures in Q3 2014

The Singapore Exchange (SGX) will launch more derivative products in the third quarter of this year to expand its offerings and cater to investors' needs.

It said on Wednesday that it will introduce a new set of Asian currency futures, which will include currency futures contracts on Chinese renminbi (RMB), Japanese yen and Thai baht.

The bourse also aims to launch options on its SGX China A50 futures, the only internationally accessible futures on China A-shares.

SGX said the trading of the new Asian currency futures on a regulated exchange platform will promote greater transparency and "better serve investment and risk management needs in the Asian time zone".

It will also boost Singapore's role as an offshore RMB hub, the bourse said.

"The introduction of varying RMB products will facilitate greater use of RMB in international trade and investment," said Mr Magnus Bocker, SGX's chief executive.

"This will also contribute towards the development and growth of Singapore as a leading offshore RMB centre."

The China A50 index options are also designed to cater to the risk management needs of global investors, and are in response to supportive industry feedback, SGX said.

"The introduction of the SGX China A50 index options is timely as offshore interest in the China A-share market has picked up substantially and hedging needs from institutional investors and asset managers have become more acute and sophisticated," said Mr Michael Syn, head of derivatives at SGX.

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