Singapore Exchange adds MSCI China Free Index contracts to offering

In line with LeapRate’s earlier report about the plans of Singapore Exchange Limited (SGX:S68) to list MSCI China Free Index (SM) futures and options contracts, the Exchange today announced the official launch of these products.

The SGX MSCI China contracts have also been certified by the Commodity Futures Trading Commission (CFTC), enabling US investors to directly trade them from within the United States.

The contracts are denominated in US dollars and track the MSCI China Free Index (SM), which comprises large and mid-cap companies listed outside of mainland China. MSCI China Free Index (SM) has a broad representation of sectors including financial, information technology and consumer companies. Thus, the SGX MSCI China contracts provide international investors with risk management tools linked to the key sectors that are driving China’s economic growth today.

Michael Syn, Head of Derivatives at SGX, says,

“The SGX MSCI China contracts respond to a growing need for broader risk management, price discovery and benchmarking tools that reflect China’s economy today. The CFTC certification of the contracts will enable us to meet U.S. investor demand for access to China’s growth opportunity, and further expand our international network.”

Theodore Niggli, Asia Head of MSCI Index Products, says,

“We are delighted that SGX has chosen to introduce options and futures contracts based on the MSCI China Free Index. The recent inclusion of US listed Chinese securities into this index has made it more representative of the breadth of the China equity markets.”

For the full announcement from SGX, click here.

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