The Singapore Exchange (SGX) will launch 10 Singapore single-stock futures (SSFs) on June 15 in response to growing demand for a broader suite of Singapore-linked equities products, it said yesterday.
This comes a week after it said it was discontinuing the bulk of its MSCI equity index futures and options contracts when their licence agreements expire in February next year - an announcement that sent its stock price tumbling over expectations of revenue loss.
SGX said then that it would continue to broaden and deepen coverage of Asia by developing more derivatives products on its own or in collaboration with its partners.
The list of underlying securities for the SGX's new SSFs are: DBS, United Overseas Bank, OCBC Bank, ComfortDelGro, Genting Singapore, Keppel Corporation, Singtel, Thai Beverage Public Company, Wilmar International and Yangzijiang Shipbuilding.
Most of these securities are also SGX MSCI Singapore Free Index (SiMSCI) stocks, the bourse operator said.
It added that in recent months, index trading activities between the SGX cash equities market and SiMSCI futures reached a record high of almost $650 million in a single day.
"SGX observed greater synchronisation and correlation between the price of futures and the underlying stocks across various intra-day timeframes, indicating growing institutional participation across both markets," it said.
"SSFs represent a next natural step in the growth of the ecosystem and offer market participants a new shelf of risk management instruments."
Yesterday, the SGX also announced that it had signed a licence agreement for four products on MSCI Singapore indexes, including SiMSCI futures and options and net total return contracts.
These will continue to be listed on the Singapore bourse after February next year, which is when the rest of SGX's MSCI contracts - save for those under MSCI Singapore - expire.
SGX equities head Michael Syn said the Singapore franchise was "at the heart of SGX's pan-Asian access offering", adding that the bourse operator was on track to broaden the continuum of its equities shelf.
SGX shares finished yesterday at $8.28, down 14 cents, or 1.7 per cent.
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