SGX accelerates wind-down of pact with MSCI

Singapore Exchange Ltd. is beginning to reduce its pact with MSCI Inc. months earlier than expected, citing market uncertainty into year-end to speed up delisting the largest derivatives product it has in partnership with the index provider.

The exchange will migrate all open positions in the MSCI Taiwan Index futures to its newly launched FTSE contracts on Oct. 30 and the MSCI product will then be suspended, Michael Syn, who oversees both the cash equities and equity derivatives businesses, said in an interview. The MSCI product had previously been set to wind down as of the license expiration in February.

“There’s uncertainty as to what the market should expect November onward because of the US election” and December holidays, Syn said, adding the delisting is being brought forward to avoid potential operational issues and “to make sure everyone’s strapped in before the elections.”

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