Singapore Exchange (SGX) has announced plans to launch SGX FTSE China A50 Index options during the third quarter of this year.
The options contract, which is still subject to final regulatory approval, will be listed as an option on SGX FTSE China A50 Index futures. The SGX China A50 futures contract has become one of SGX’s fastest growing derivatives contracts, with a annual trading volume record of 22 million contracts during 2013. SGX said that it is the sole internationally accessible futures contract on China A-shares.
SGX also said it will also introduce additional Asian currency futures which will expand its current suite of foreign exchange futures. This will also take place during the third quarter of 2014, subject to regulatory approval. It will include currency futures contracts on Chinese renminbi, Japanese yen and Thai baht. They follow in the footsteps of six FX futures contracts launched in November 2013, which have transacted over US$1 billion in notional value since trading began.
SGX said this meshes in with global G20 regulatory reforms, whereby standardised OTC derivative contracts have to be traded on exchanges or electronic platforms, and cleared through central counterparts.