SGX and PSE collabrate to develop Philippines Derivatives Market

12/03/2013

Singapore Exchange (SGX) and The Philippine Stock Exchange (PSE) have entered into a Memorandum of Understanding (MOU) to cooperate in the development of Philippines-linked derivatives products.

As part of the MOU, SGX and PSE will jointly explore the development and promotion of Philippines futures and options to address the demands of international investors. The first product to be launched would be a Philippines index futures, based on the MSCI Philippines index. The product is targeted for listing on SGX in 4Q2013, subject to regulatory approval. Both exchanges will also look into the potential listing of derivatives products on PSE in due course in response to the needs of the markets.

PSE President and CEO Mr Hans B. Sicat said, “We are delighted to have SGX as a partner in the building of the Philippines derivatives market. We look forward to leveraging on SGX's experience and network, alongside growing investment interest in the Philippines, to bring the country's capital markets to new heights.”

“We look forward to this strengthened partnership with PSE and the opportunity to advance both our derivatives markets. With this futures contract, investors are assured of an efficient and effective risk management tool as they tap opportunities offered by the Philippine economy. The addition of this contract also builds upon SGX’s offering of a one-stop access into Asia’s key capital and growth markets,” said Mr Magnus Böcker, CEO, SGX