Singapore Exchange (SGX) will from next year let customers of Deutsche Börse-owned European derivatives market Eurex access its exchange via a data centre link.
From January, Eurex members hosted at SGX’s co-location data centre will have the ability to trade on the Singapore market via an access point hosted at SGX.
Similarly, SGX members located at co-location facilities operated by Eurex and Deutsche Börse can use the German exchange’s high performance network to access the SGX derivatives market and real-time market data.
According to Eurex, the link lets customers of each exchange access both markets in a more cost effective way while ensuring trade matching takes place at the respective home exchanges.
“We welcome this cooperation as it extends our reach in Europe and offers our clients another efficient connectivity option to the European markets,” said Tinku Gupta, head of market data and access at SGX.
New emerging market options
Separately, Eurex has entered into an agreement with index provider MSCI to launch new derivatives based on regional and emerging market indices, offering members new exposure options.
During Q1 2013, Eurex aims to launch new derivatives contracts on ten regional and 20 country indices, comprising the major regional indices for developed markets and a broad coverage of emerging markets indices, including the MSCI Emerging Markets and MSCI Frontier Markets indices.
“Based on demand of our members and market participants, we will expand our product suite. The underlying MSCI indices are highly regarded in the financial industry, especially by buy-side institutions,” said Peter Reitz, member of the Eurex Executive Board. “Currently, there are only a few listed index derivatives available globally based on the respective indices. With our planned product initiatives we will offer new hedging opportunities for institutional investors.”
“With close to US$7 trillion estimated to be benchmarked to MSCI indices globally, the availability of derivatives based on our indices will provide an important tool for investors managing their MSCI benchmarked portfolios,” added Baer Pettit, managing director and head of the MSCI index business.