Singapore Exchange to launch 10 single stock futures
Record-high trading between SGX cash equities, SiMSCI futures
2 Jun 2020 | The Asset

Singapore Exchange (SGX) has announced that it will launch 10 Singapore single stock futures (SSFs) on June 15, 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 which are also SGX MSCI Singapore Free Index (SiMSCI) stocks.

In recent months, index trading activities between the SGX cash equities market and SiMSCI futures reached a record high of almost S$650 million (US$461.6 million) in a single day.

The SGX has 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 has also signed a licence agreement for four products on the MSCI Singapore indices, including SiMSCI futures and options, and net total return contracts, which will continue to be listed on the SGX after February 2021. 

“We integrated our cash equities and equity derivatives businesses a year ago to form a single expanded platform capable of scaling product and service innovations,” says Michael Syn, SGX’s head of equities. “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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