SINGAPORE: Singapore Exchange (SGX) is significantly expanding its pan-Asia shelf of benchmark equity derivatives with a comprehensive series of Asia Ex-Japan and Emerging Markets (EM) Asia regional and single country futures.

These are based on Net Total Return (NTR) and Price Return indices calculated by FTSE Russell.

SGX serves global investors seeking trusted exposure to Asia’s compelling growth engines across a complex continental geography. The new futures offer benchmarks including Indonesia, Malaysia, Philippines, Taiwan, Thailand and Vietnam, meeting our customers’ increasing demand for institutional-grade exchange solutions in Asia which offer superior operational and capital efficiency.

In response to the portfolio needs of its international institutional customers, SGX has over the past few years pioneered Asian derivatives which incorporate dividend returns as well as price returns. These newest NTR products seek to extend SGX’s strong customer adoption of the MSCI index series to the FTSE Russell index series. There are approximately US$16 trillion in reported fund assets under management (AUM) tracking FTSE Russell benchmarks.

Michael Syn, Head of Equities at SGX, said, “We are continually delivering innovative solutions to support the growth ambitions of our customers who seek a trusted exchange for access to Asia. The new contracts, derived from FTSE’s benchmark Global Equity Index Series (GEIS), are our next step in further developing and advancing SGX’s Asia-access waterfront. We look forward to bringing investors even more asset-class opportunities within the pan-Asian capital structure, based on broad strategies, sectors and themes.”

Today, SGX has the largest and most liquid FTSE and MSCI equity index derivatives for Asian markets.

The latest contracts* are expected to be certified by the Commodity Futures Trading Commission (CFTC), enabling US investors to trade them directly from within the US. The new contracts are:

SGX FTSE Equity Net Total Return (NTR) Index Futures – to be launched on 24 August 2020

•     SGX FTSE Asia ex-Japan NTR (USD) Index Futures
•     SGX FTSE Emerging Market Asia NTR (USD) Index Futures
•     SGX FTSE Malaysia NTR (USD) Index Futures
•     SGX FTSE Philippines NTR (USD) Index Futures
•     SGX FTSE Taiwan NTR (USD) Index Futures
•     SGX FTSE Thailand NTR (USD) Index Futures

SGX FTSE Equity Price Return Index Futures (denominated in USD) – subject to final regulatory process for launch in mid-September 2020

•     SGX FTSE Asia ex-Japan Index Futures
•     SGX FTSE Emerging Market Asia Index Futures
•     SGX FTSE Indonesia Index Futures
•     SGX FTSE Malaysia Index Futures
•     SGX FTSE Philippines Index Futures
•     SGX FTSE Thailand Index Futures
•     SGX FTSE Vietnam 30 Index Futures