The Singapore Exchange (SGX) and US derivatives exchange CME Group have expanded their partnership with plans to launch five new futures contracts based on FTSE Russell indices.
The new futures mark an extension of the long-standing clearing relationship between SGX and CME Group after establishing their mutual offset system (MOS) for clients to trade and clear Asia and US derivatives markets in 1984.
“This [expansion] will enhance our offering in terms of providing our mutual customers the platform to manage their overnight risks in an effective and timely manner, and giving them greater access to the combined liquidity of both SGX and CME Group in a single marketplace,” said Tim McCourt, global head of equity index and alternative investment products at CME Group.
Three net total return (NTR) futures contracts, SGX FTSE Emerging Market NTR (USD) index futures, SGX FTSE Japan NTR (USD) index futures, and SGX FTSE New Zealand NTR (USD) index futures, will launch on 23 November.
The remaining two price return contracts, SGX FTSE Emerging Market (USD) index futures and SGX FTSE China H50 (USD) index futures will launch at the same time and become available on MOS in the first half of next year.
News of the derivatives’ launch follows confirmation in August that SGX and the London Stock Exchange Group’s FTSE Russell’s had entered into a long- term strategic partnership to develop a multi-asset index derivatives offering focused on Asian and emerging markets.
“This collaboration will enhance global access for investors wishing to the trade and clear Asian equity derivatives outside of the region and bolster liquidity across products,” said Waqas Samad, FTSE Russell chief executive. “Working closely with SGX, the addition of five new index futures contracts reflects our joint commitment to meeting investor demand for equity derivative and options trading as well as ETFs across Asia Pacific.
“As highly liquid multi-asset derivatives exchanges, both SGX and CME Group continue to play an important role in the creation of global risk management products centred on FTSE Russell index futures.”