Singapore Exchange (SGX) and S&P Global Market Intelligence have entered into a partnership that will enable SGX Index Edge to use S&P Global Markets Intelligence’s Alpha Factor Library to develop new quantitative index models and smart beta indices across Asia-Pacific.

As part of this agreement, SGX Index Edge has immediate access to the comprehensive research and datasets available through S&P Global Market Intelligence’s Alpha Factor Library. Access will enable SGX Index Edge to identify sources of alpha and enhance its existing index research and design capabilities, while developing further customisation of index offerings for issuers, asset managers and investors across Asia. 

“The relationship with S&P Global Market Intelligence is an important development in the design and production of innovative new indices for domestic and international investors,” says Ng Kin Yee, head of market data & connectivity, at SGX. “The Alpha Factor Library will be invaluable to SGX Index Edge in building its offering to institutional clients. At the same time, we will use the deep information and analytical sources provided by S&P Global Market Intelligence to tap into growing investor appetite for smart beta indices.” 

Developed by S&P Global Market Intelligence, the Alpha Factor Library is a stock selection signal library built using global point-in-time databases. The Alpha Factor Library is designed to identify new sources of alpha and facilitate the construction of investment screens and candidate lists from a catalogue of proven alpha signals and top-down macroeconomic regimes along with drill downs into industry-specific signals and trends.

“Alpha Factor Library, the first product of its kind, drills down into industry specific signals and trends, and powers both fundamental and quantitative investment processes. Through this collaboration with SGX, we hope to further extend the reach of our unique datasets and advanced analytics to regional and global investors,” says Ben Soong, head of Asia-Pacific sales, at S&P Global Market Intelligence.