SGX to discontinue most MSCI equity index futures and options contracts next year

THE Singapore Exchange (SGX) will discontinue its MSCI equity index futures and options contracts, save for those under MSCI Singapore, when their licence agreements expire in February next year, the bourse operator said in a filing on Wednesday.

It will, however, keep its partnership with New York-based global index publisher MSCI on MSCI Singapore Index products, with both parties working to extend the partnership "well beyond 2021".

SGX chief executive Loh Boon Chye said the bourse operator will work closely with relevant stakeholders to manage their open interest as it "gradually discontinues" the bulk of its MSCI equity index futures and options contracts.

While the move could have a near-term impact on SGX's equities derivatives open interest, its multi-asset portfolio shelf has reached "a critical mass", he added.

Said Mr Loh: "SGX's track record in derivatives positions us well to refresh and grow our suite of pan-Asian access products in a new direction."

SGX said it would continue to broaden and deepen coverage of Asia by developing more derivatives products on its own or in collaboration with partners.

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On Wednesday, MSCI signed a licence agreement with Hong Kong Exchanges and Clearing (HKEX) to launch Asia and Emerging Markets futures and options contracts.

Under the agreement, HKEX unit Hong Kong Futures Exchange will receive a suite of MSCI equity indices on which it will base an initial 37 futures and options contracts.

SGX called for a trading halt on Wednesday from 6.33am to 12.15pm. Shares of SGX were trading at S$8.78 as at 1.03pm, down S$1.12 or 11.3 per cent.