Singapore Exchange (SGX) is widening its scope of its Mutual Offset System (MOS) with CME Group on Nov 9.
The wider scope means global investors now get round-the-clock access to trade and clear on the leading derivatives marketplaces in Asia and the US.
On Nov 23, SGX will launch five new regional and single-country futures contracts based on net total return and price return indices calculated by FTSE Russell.
These include the SGX FTSE Emerging Market NTR (USD) Index Futures, SGX FTSE Japan NTR (USD) Index Futures, SGX FTSE New Zealand NTR (USD) Index Futures, SGX FTSE Emerging Market (USD) Index Futures and SGX FTSE China H50 (USD) Index Futures.
The move is said to further broaden its shelf of pan-Asia benchmark equity derivatives.
Of these, the SGX FTSE Emerging Market and SGX FTSE China H50 Price Return futures are planned to be available for MOS from the first half of 2021.
The effective date will be announced in due course.
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CME Group and SGX will align the contract specifications on each exchange, enabling international customers to transfer positions from one venue to the other for maximum flexibility and efficiency in managing portfolio risk.
The MOS was pioneered alongside the Chicago Mercantile Exchange in 1984 by Singapore International Monetary Exchange (SIMEX), which became part of SGX.
Michael Syn, senior managing director and head of equities at SGX, said, “We are delighted to be standing together with CME Group at the forefront of serving international investors with true round-the-clock trading and clearing”.
“This Mutual Offset System continues to be a unique link offering unrivalled access to our participants. At the same time, the introduction of new products with FTSE Russell further enhances our total Asian waterfront of risk-management solutions,” he adds.
Shares in SGX closed 17 cents higher or 1.9% up at $9.28 on Nov 9.
