Tue. May 11th, 2021

Regulation HK

Financial Regulator

SGX Partners with FTSE Russell to Expand Derivatives Product Line

2 min read

The product expansion will cater to demand from institutional investors for solutions in multi-asset, ESG, dividend, sector and duration strategies.

SGX (Singapore Exchange) and FTSE Russell have signed a long-term strategic partnership agreement to jointly develop and market an Asian and Emerging Markets focused, multi-asset index derivatives offering.

The core products will be anchored around FTSE Russell’s global benchmark indices for fixed income, listed real estate, global equities and currencies. The product expansion will cater to demand from institutional investors for solutions in multi-asset, ESG, dividend, sector and duration strategies.

Under the agreement, SGX and FTSE Russell have committed to jointly drive global marketing, product research and customer adoption, and to closely collaborate in product and platform development between their information services businesses.

“SGX’s multi-asset platform provides global investors with a single point of access into Asia, offering extensive and efficient investment and risk management tools covering all major asset classes,” said SGX chief Loh Boon Chye. “With this expanded agreement with FTSE Russell, we will develop more unique tools to match evolving investor needs.”

The agreement will help support growing client and investment demand across Asia for access to index-based listed futures and options markets as well as ETFs, according to FTSE Russell CEO Waqas Samad.

“We look forward to partnering with SGX to develop a range of index-based products to support the increasing need for sustainable investment solutions developed to globally recognised ESG standards, providing investors with further choice, diversification and risk management opportunities for their portfolios,” Samad said.

Earlier this month, SGX announced plans to launch Asia’s first international REIT futures based on the widely followed FTSE EPRA Nareit Asia ex-Japan Index, as well as a range of Asia Ex-Japan and Emerging Markets Asia regional and single country futures based on net total return and price return indices calculated by FTSE Russell.

In the coming months, SGX and FTSE Russell will continue to roll out products that are “highly relevant to the evolving needs of global investors who are facing a sense of urgency to diversify their portfolios in search for investment opportunities and cost efficiencies”.

“The need for high-quality access to Asia has become increasingly pertinent given the region’s idiosyncratic risks exacerbated by ongoing geopolitical uncertainties,” SGX said.

Earlier this month, SGX had signaled the impending launch of a new and expanded suite of derivatives products, ahead of the expiry of its non-Singapore MSCI product licences in February 2021.

Last month, SGX also introduced a new futures contract, in collaboration with FTSE International, tracking Taiwan’s stock market.

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