SINGAPORE Exchange (SGX) has unveiled a new futures contract linked to the MSCI Malaysia Index that will begin trading on Feb 9.
The underlying index tracks 43 Kuala Lumpur-listed stocks.
The new contract has been approved to be directly offered and traded in the United States. It will add to SGX's existing suite of South-east Asian index futures, which already comprise contracts linked to the Indonesia, Philippines, Singapore and Thailand stock indices. The South-east Asian contracts accounted for about 2.6 per cent of total equity index futures volumes on SGX in November.
"As the economy of the South-east Asia region grows, this region will take on a larger weightage in global benchmark indices, and the need for more efficient access and risk management instruments will increase in tandem," SGX said in a statement.
"Given Malaysia's importance as an anchor economy in the region, we are glad to see MSCI Malaysia futures added to the suite of Asian equity index futures on SGX," CIMB Securities chief executive Carol Fong said in a statement. "South-east Asia's proportion of global asset portfolios is growing and the economies offer huge capital market potential."
SGX shares traded at S$7.35 as at 12.47pm, up by 0.8 per cent or six Singapore cents.