SINGAPORE: Singapore Exchange (SGX) reaffirmed its commitment to providing market participants with a single platform to trade and risk-manage Asia across asset classes, as it reduces its licence agreement with MSCI Inc.

This comes on the back of a decision between MSCI and SGX to let SGX’s licence agreement with MSCI, other than for MSCI Singapore, expire in February 2021. MSCI Singapore futures and options will remain listed on SGX.

Loh Boon Chye, Chief Executive Officer of SGX, said, “SGX has had a long and fruitful partnership with MSCI. Over the past 23 years, we have worked together to build an international offshore market for global investors to access Asia through regional and single-country products. We will work closely with the relevant stakeholders in managing their open interest as we gradually discontinue our MSCI equity index futures and options contracts, except for MSCI Singapore, next year. While this may have a near-term impact on our equities derivatives open interest, our multi-asset portfolio shelf has reached a critical mass. SGX’s track record in derivatives positions us well to refresh and grow our suite of pan-Asian access products in a new direction.”

Anchored on access to Asia’s biggest economies – China, Japan and India – across asset classes, SGX will continue to broaden and deepen coverage of Asia by developing more derivatives products on its own or in collaboration with its partners.