New Agreement Between Singapore Exchange and MSCI Adds Up to 100 Derivative Contracts
Singapore Exchange has reached a new agreement with MSCI to deepen cooperation and expand derivative products.
The exchange will introduce up to 100 new futures and options contracts based on MSCI indices, covering major industry indices in developed and emerging markets, as well as utilities, industrials, energy, and finance.
This agreement is driven by the expansion of derivatives, directing capital flows towards Asian derivative trading and related clearing services, benefiting both the Singapore Exchange and MSCI, while intensifying competition for regional index products.
Source: Public Information
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The Singapore Exchange already had MSCI Singapore and other index futures products, and this expansion of the licensing agreement significantly increases the number of contracts, aiming to strengthen its position in the global derivatives market.
The capital strategy focuses on covering more countries and industry indices, motivated by attracting international hedging and asset allocation demands, and competing with European MSCI derivatives centers like Eurex for the advantage of the Asian time zone.
Compared to the index product layout of the Hong Kong Stock Exchange and other Asia-Pacific derivatives platforms, the Singapore Exchange is in a phase of rapidly enriching its product line through licensing expansion.
Essentially, this is a restructuring of the industry chain, where the mechanism of index licensing and exchange cooperation lowers the barriers to entry for new products, making the Asian market more complete in meeting global capital allocation needs.
ABAB News · Cognitive Law
- Index licensing is the key to derivatives expansion
- Time zone advantages determine regional pricing power
- Product breadth ultimately translates into liquidity depth