SGX rolls out pioneering suite of ESG derivatives
THE Singapore Exchange (SGX) has launched its pioneering suite of environment, social and governance (ESG) derivatives under the SGX First (Future in Reshaping Sustainability Together) sustainability agenda, which was announced in December 2020.
The suite of four new derivatives comprises the SGX FTSE Emerging ESG Index Futures, the SGX FTSE Emerging Asia ESG Index Futures, the SGX FTSE Asia ex Japan ESG Index Futures and the SGX FTSE Blossom Japan Index Futures.
Together they mark a key thrust of the SGX First initiative and are designed to enable seamless adoption of ESG factors into investment portfolios, said SGX in a press statement on Monday.
According to the bourse, the indices are backed by major global pension funds and drawn from leading international standards. They provide a combination of improved ESG profile while maintaining risk and return characteristics largely similar to benchmark equity indices, said SGX.
All four contracts have been developed by SGX in partnership with FTSE Russell.
They are certified by the Commodity Futures Trading Commission, which means market participants can trade them directly from the US.
A NEWSLETTER FOR YOU
ESG Insights
An exclusive weekly report on the latest environmental, social and governance issues.
"Our leadership in developing a pan-Asia shelf of benchmark equity derivatives has placed us in a distinct position to drive the change the world needs to see today. Together with FTSE Russell's strengths in investable multi-asset products and ESG, our offering of sustainable risk-management solutions in Asia is unrivalled," said Michael Syn, head of equities at SGX.
Shares of SGX were down by S$0.02 or 0.2 per cent at S$10.07 as at the midday trading break.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
China’s top airlines improve balance sheet in Q1; outlook positive for May Day
Stablecoin issuer Tether invests US$200 million in brain-computer interface company
Yahoo to lay off staff in Singapore as it shifts to content curation
US: Wall St opens higher on megacap strength, Fed verdict awaited
IReit Global occupancy rate grows to 91.5% in Q1
Yen surges against US dollar on suspected intervention