SGX, FTSE Russell to develop multi-asset index derivatives

The Singapore Exchange (SGX) and FTSE Russell will jointly develop multi-asset index derivatives products focusing on Asian and emerging markets.

The move is part of a long-term partnership agreement with the British provider of stock market indexes and associated data services signed yesterday, said the SGX.

It added that the pact will deepen their long-term partnership to deliver new Asian multi-asset solutions, noting: "The core products will be anchored around FTSE Russell's global benchmark indices for fixed income, listed real estate, global equities and currencies."

The move comes after MSCI said in May that it would move licensing for derivatives products on some indexes from Singapore to Hong Kong.

A month later, the SGX launched a single-stock futures on some companies listed here and disclosed plans to acquire the remaining 80 per cent stake in BidFX, a foreign exchange trading platform.

Last month, it announced a partnership with United States exchange Nasdaq to help companies access capital in both markets and a streamlined framework for issuers seeking a secondary listing on the SGX.

US President Donald Trump ordered an end to Hong Kong's special status with the US last month and signed legislation that would sanction Chinese officials responsible for cracking down on political dissent in the city.

The SGX said yesterday that the need for high-quality access to Asia has become increasingly pertinent, given the region's idiosyncratic risks exacerbated by geopolitical uncertainty.

SGX chief executive Loh Boon Chye told a virtual briefing: "Together with FTSE Russell, we have built one of the largest and most liquid FTSE equity index derivatives franchises for Asian markets. With this expanded agreement... we will develop more unique tools to match evolving investor needs."

Exchange-traded funds (ETFs) and derivatives based on FTSE Russell indexes are some of the most actively traded and liquid vehicles in the world. FTSE Russell's global index family includes well-known benchmarks such as the US large-cap Russell 1000 Index, the FTSE 100 and FTSE China 50.

Mr Waqas Samad, CEO of FTSE Russell and group director of information services at the London Stock Exchange Group, said the new partnership with SGX will help support growing demand across Asia for access to index-based listed futures and options markets as well as ETFs.

The SGX is already regarded as the world's most liquid international market for the benchmark equity indexes of China, India, Japan and Asean.