The Singapore Exchange to launch new single stock futures
03 June 2020 Singapore
Image: MOLPIX/Shutterstock.com
The Singapore Exchange (SGX) is set to launch 10 Singapore Single Stock Futures (SSFs) on 15 June, in response to growing client demand for a broader suite of Singapore-linked equities products.
The list of underlying securities for the SSFs are Comfortdelgro, DBS, Genting, Keppel, OCBC, Singtel, Thai Beverage, UOB, Wilmar and Yangzijiang Shipbuilding.
Most of these securities are also SGX MSCI Singapore Free Index (SiMSCI) stocks.
In recent months, index trading activities between SGX cash equities market and SiMSCI futures reached a record high of almost S$650 million in a single day.
SGX observed greater synchronisation and correlation between the price of futures and the underlying stocks across various intraday timeframes, indicating growing institutional participation across both markets.
The exchange now says that SSFs represent a “next natural step in the growth of the ecosystem” and offer market participants a new shelf of risk management instruments.
Elsewhere, SGX has signed a licence agreement for four products on MSCI Singapore indices, including SiMSCI futures and options and net total return contracts, which will continue to be listed on SGX after February 2021.
Michael Syn, head of equities at SGX says: “We integrated our cash equities and equity derivatives businesses a year ago, to form a single expanded platform capable of scaling product and service innovation for our clients.
“Our Singapore franchise is at the heart of SGX’s pan-Asian access offering and with these latest developments, we are well on track to broaden the continuum of our equities shelf.”
The list of underlying securities for the SSFs are Comfortdelgro, DBS, Genting, Keppel, OCBC, Singtel, Thai Beverage, UOB, Wilmar and Yangzijiang Shipbuilding.
Most of these securities are also SGX MSCI Singapore Free Index (SiMSCI) stocks.
In recent months, index trading activities between SGX cash equities market and SiMSCI futures reached a record high of almost S$650 million in a single day.
SGX observed greater synchronisation and correlation between the price of futures and the underlying stocks across various intraday timeframes, indicating growing institutional participation across both markets.
The exchange now says that SSFs represent a “next natural step in the growth of the ecosystem” and offer market participants a new shelf of risk management instruments.
Elsewhere, SGX has signed a licence agreement for four products on MSCI Singapore indices, including SiMSCI futures and options and net total return contracts, which will continue to be listed on SGX after February 2021.
Michael Syn, head of equities at SGX says: “We integrated our cash equities and equity derivatives businesses a year ago, to form a single expanded platform capable of scaling product and service innovation for our clients.
“Our Singapore franchise is at the heart of SGX’s pan-Asian access offering and with these latest developments, we are well on track to broaden the continuum of our equities shelf.”
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