SGX launches index services in Asia, seeks to build regional index business

SINGAPORE Exchange (SGX) has launched a new index business, SGX Index Edge, that will offer comprehensive services aimed at addressing the rising demand for index-linked investment in Asia.

"The SGX branded indices will also provide greater transparency and profile SGX's securities and derivatives markets to investors, helping them to make more informed investment decisions and attracting greater participation in its securities and derivatives markets," SGX said in a release on Monday.

Since October last year, SGX has successfully conducted a beta launch on a series of futures-based indices - SGX Access Asia indices - tailored for product issuers of exchange-traded notes (ETNs), OTC (Over-the-Counter) products and retail structured products. The Access Asia suite of 60 indices are distributed through SGX's network of brokers, major data vendors, independent software vendors, other exchanges and trading firms.

Plans are also in the works to offer Asia-based index solutions for product issuers across the region,including thematic and strategy-based equity indices for the Singapore market.

Loh Boon Chye, chief executive officer of SGX, said: "As Asia's most international exchange and a leading market infrastructure for investors across Asia, we are in a unique position to develop Asia-focused index capabilities, as a natural extension of SGX's existing suite of products and services. The launch of SGX Index Edge demonstrates our ability to continually innovate to position SGX strongly for the long-term as we look towards becoming the pan-Asian index provider of choice."

Tinku Gupta, SGX's head of market data and connectivity, added: "Offering index services...helps us in attracting new institutional channels that are increasingly turning towards index-linked investment solutions for their investors. While we will create SGX branded indices, we will also continue to grow our strong partnerships with global index providers to further our reach and expertise for both our securities and derivatives markets."