SGX proposes to add new Asian Index Futures

Could be introduced by 4Q 2013.

Singapore Exchange (SGX) proposes to add new Asian Index Futures contracts to provide global customers an extensive coverage into Asia’s key markets. These contracts will complement SGX’s current suite of futures contracts including SGX MSCI Singapore, SGX MSCI Indonesian, SGX MSCI Taiwan, SGX Nikkei 225 (Japan), SGX FTSE China A50 and SGX CNX Nifty (India).

The proposed new contracts comprise the following : SGX MSCI Thailand Index Futures, which covers a total of 28 component stocks from Thailand; SGX-PSE MSCI Philippines Index Futures, which covers a total of 18 component stocks from Philippine, and SGX MSCI India Index Futures which covers a total of 75 component stocks from India.

SGX is seeking the views of market participants and the public on the specifications of the proposed contracts’ price limits, position limits, termination of trading and final settlement price. The proposed new Asian Index Futures contracts will be denominated in US dollar and traded and cleared by SGX.

The listing of the Asian Index futures on SGX offers investors an alternative trading platform to the over-the-counter market, and provides the transparency of an exchange-traded instrument with the associated assurance of central clearing. SGX targets to introduce the Asian futures contracts in the fourth quarter of 2013, subject to regulatory approval.

The consultation paper is available on SGX’s website at www.sgx.com from today. Market participants and members of the public can submit their comments and suggestions from today until 2 August 2013  

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