SGX deepens Asian Derivatives shelf with new equity indices

12/03/2013

Singapore Exchange (SGX) announced today that it has signed a licensing agreement with global index provider MSCI for 14 new regional and country indices. With this, SGX has licensed a total of 19 MSCI indices, encompassing almost all of Asia’s key capital and other growth markets.

The 14 additional indices are components of broader regional indices like the MSCI Emerging Markets Index, covering Thailand, the Philippines and other country markets, and the MSCI Frontier Markets Index. The expanded suite of SGX products based on MSCI indices will provide global investors with extensive reach into Asian emerging markets, and complements SGX’s existing equity derivatives suite such as SGX MSCI Singapore, SGX MSCI Taiwan, SGX Nikkei 225 (Japan), SGX FTSE China A50 and SGX CNX Nifty (India). As the Asian Gateway, SGX will provide investors with single-country access to about 90% of the MSCI AC Asia Index by market capitalization.

“The pipeline of new products is aligned to our global customer’s interest and needs. SGX’s customers can look forward to a new and more comprehensive selection of hedging and trading opportunities including new country exposures. We are pleased with this extended MSCI cooperation, as it is core to SGX’s proposition as an Asian gateway and one-stop risk management platform,” said Mr Michael Syn, Head of Derivatives, SGX.

“We view SGX as a key exchange in Asia, and we are delighted to extend our close working relationship with them,” said Mr Baer Pettit, Managing Director and Global Head of the MSCI Index Business. “This latest agreement gives SGX clients expanded access to key markets in the region and reflects the widespread use of MSCI indices as benchmarks for the Asian market by institutional investors globally.