SGX extends global connectivity and futures offerings

The Singapore Exchange (SGX) has made it easier for global investors to link with the bourse and access a range of regional markets.

The Singapore Exchange (SGX) has made it easier for global investors to link with the bourse and access a range of regional markets.

The exchange has launched hubs in Chicago and London, which provide local connections to SGX markets. SGX expects to begin operating the hubs once pre-trade risk controls at the exchange level in the derivatives market are made available to participants in April.

By connecting to SGX’s hubs, global investors can access the world’s biggest offshore market for Asian equity futures, which include the China A50 futures, the only offshore futures for China’s domestic A-share market. “Customers coming to SGX’s hubs can access Asia’s biggest and most promising economies at lower cost and greater convenience,” said Magnus Bocker, CEO, SGX.

The exchange is exploring Hong Kong and Tokyo as the next locations for its hubs.

In addition, SGX is adding the MSCI Indonesia Index Futures to its suite of Asian equity index derivatives in Q2 this year. The new contract is based on the MSCI Indonesia Index, which measures the performance of the largest and most traded stocks listed on the Indonesian equity market. Indonesia is expected to grow its GDP by 6.3 to 6.7% this year, based on its central bank’s report last month.

“We are pleased to bring investors the MSCI Indonesia Index Futures, a means to easily access and manage risks of exposure to one of Asia’s most promising economies,” said Michael Syn, head of derivatives, SGX. “The listing of this contract on SGX, with its 17-hour trading session, also ensures investors can manage and hedge their Indonesian portfolios effectively even after hours.”

S&P Indices has launched the S&P CNX Nifty Futures Real-time Index, a measure of the returns on offshore expose to the Indian equity market based on SGX-listed S&P CNX Nifty Index futures prices.

The new S&P Nifty Futures Real-time Index tracks the performance of a portfolio holding a single SGX Nifty Futures contract reinvested on a monthly basis. The SGX Nifty Futures contract is based on the S&P CNX Nifty Index, the headline index of the National Stock Exchange of India. The index tracks 50 stocks across 25 sectors of the Indian economy.

“The S&P CNX Nifty Futures Real-time Index meets customers’ demand to effectively benchmark a real-time investment process using SGX’s premier Nifty futures contract,” said Syn. “The underlying futures contract is liquid and US dollar-based, making the index a unique and investable benchmark for international fund managers to gain exposure to India’s equity capital market.”

NYSE Technologies, the commercial technology division of exchange group NYSE Euronext, is also extending its secure financial transaction infrastructure (SFTI) to the SGX data centre in Singapore.

With the SFTI network in the SGX data centre, all 1,600 SFTI clients around the world can access SGX’s derivatives and securities markets. Qualified investors in Singapore can also access NYSE Liffe, the European-based derivatives exchange of NYSE Euronext, by establishing a local connection from their order management systems to the SGX data centre.

“This arrangement is part of our strategy to reach out to liquidity pools in major financial cities to facilitate cross-border trading between markets,” said Gan Seow Ann, president of SGX. “We will continue with our international collaborative efforts to enable our customers to tap opportunities in the region.”