Singapore Exchange (SGX)

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SGX FY2020 Result ended 30 June 2020
Rev $1b (vs $0.9b)
Operating profit $565m (vs $461m)
NP $471m (vs $391m)
Final Qtr 8cents dividend xd 1 Oct 2020 (vs 7.5cents) 
https://links.sgx.com/FileOpen/SGXNet_FY...eID=625696

Wear mask and keep your social distance, everyone

[weijian]

It makes sense for SGX to implement the FTSE Taiwan index as the first mitigation action. This is quite consistent with their prior actions in the last crisis with NSE on the Niffy contracts.

The FTSE index and MSCI index are actually quite similar in a sense that the top 10 components are the same companies (you cannot get too far off based on market cap) but weightages especially the top stock TSMC is actually very different with FTSE putting in a limit for individual stock. I reckon the difference in TSMC's weightage (MSCI:37.6% FTSE: 18.94%) would actually be the most significant difference between both contracts? I am assuming that other factors like contract sizes and expiry dates etc can be mostly equalized with SGX as the same offerer/clearing house.

I thought this change would be a very good case study and test on the supposed "network effects" that stock exchanges are expected to enjoy.

MSCI Taiwan index: https://api2.sgx.com/sites/default/files...0%29_0.pdf

SGX to introduce SGX FTSE Taiwan Index futures 

https://links.sgx.com/FileOpen/20200701_...eID=622059

The mitigation actions are considerably in place now.

SGX significantly expands all-Asia waterfront for equity derivatives 

The new futures offer benchmarks including Indonesia, Malaysia, Philippines, Taiwan, Thailand an Vietnam, meeting our customers’ increasing demand for institutional-grade exchange solutions in Asia which offer superior operational and capital efficiency

https://links.sgx.com/FileOpen/20200811_SGX_significantly_expands_all-Asia_waterfront_for_equity_derivatives.ashx?App=Announcement&FileID=626964

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Loh Boon Chye, Chief Executive Officer of SGX, said, “We are excited to bring our strategic partnership with FTSE Russell to a new level. Together with FTSE Russell, we have built one of the largest and most liquid FTSE equity index derivatives franchises for Asian markets. SGX’s multi-asset platform provides global investors with a single point of access into Asia, offering extensive and efficient investment and risk management tools covering all major asset classes. With this expanded agreement with FTSE Russell, we will develop more unique tools to match evolving investor needs.

FTSE Russell’s leadership in the world of investable multi-asset products and ESG, together with SGX’s leading position and unrivalled capabilities in Asian derivatives, will drive even greater impact and value creation for our customers.”
https://links.sgx.com/FileOpen/20200820_...eID=628616

Stay home and stay healthy, everyone.

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Singapore Exchange (SGX) is collaborating with UK-based cryptocurrency market data provider CryptoCompare, to launch crypto indices under the SGX iEdge index suite, namely the iEdge Bitcoin Index and iEdge Ethereum Index, as the first batch of such indices. 
https://links.sgx.com/FileOpen/20200901_...eID=630111

Stay home and stay safe, everyone.

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In July 2020, SGX acquired BidFX, a leading cloud-based FX trading platform for institutional investors, advancing its global ambitions to offer end-to-end FX platform and solutions and establish itself as a one-stop venue for international FX OTC and futures participants.

SGX wins “Best Exchange for FX” at FX Markets e-FX Awards 2020 

Award acknowledges SGX’s efforts to enhance capital efficiencies for market participants; bridging OTC and listed FX markets with its acquisition of BidFX as well as first-of-its-kind FlexC FX futures product offering.
https://links.sgx.com/FileOpen/20200916_...eID=631820

Stay home and stay safe, everyone.

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ICBC CSOP FTSE Chinese Government Bond Index ETF will start trading on 21 September, 9:00 am
Ms Jacqueline Loh, Deputy Managing Director for Markets and Development, MAS, said: “The listing of the first China bond ETF in Singapore is most timely. It offers a low-cost and liquid avenue for global investors to gain access to Chinese assets through Singapore, at a time when China’s bond market is increasingly opening up to greater foreign investor participation. The debut of this product class marks a new milestone for Singapore’s financial sector, as we continue to connect global investors to Asia’s promising market opportunities.”
https://links.sgx.com/FileOpen/20200917%...eID=631983

Stay home and stay safe, everyone.

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Update on india connect
Loh Boon Chye, Chief Executive Officer of SGX, said, “Building connectivity across international platforms in Singapore and India will facilitate unfettered access for global market participants, and in turn enhance investments and capital market flows between India and the world. As Asia’s pioneering central counterparty, SGX will work with NSE and stakeholders to develop a connectivity infrastructure that incorporates international best practices and creates new value for existing and new customers. We deeply appreciate the continued support provided by the government and regulatory authorities in India and Singapore. We look forward to broadening participation and deepening liquidity in Nifty products for international participants, as part of the growth of GIFT City.”

Stay home and stay safe, everyone.

[weijian]

It makes sense for SGX to implement the FTSE Taiwan index as the first mitigation action. This is quite consistent with their prior actions in the last crisis with NSE on the Niffy contracts.

The FTSE index and MSCI index are actually quite similar in a sense that the top 10 components are the same companies (you cannot get too far off based on market cap) but weightages especially the top stock TSMC is actually very different with FTSE putting in a limit for individual stock. I reckon the difference in TSMC's weightage (MSCI:37.6% FTSE: 18.94%) would actually be the most significant difference between both contracts? I am assuming that other factors like contract sizes and expiry dates etc can be mostly equalized with SGX as the same offerer/clearing house.

I thought this change would be a very good case study and test on the supposed "network effects" that stock exchanges are expected to enjoy.

MSCI Taiwan index: https://api2.sgx.com/sites/default/files...0%29_0.pdf

SGX to introduce SGX FTSE Taiwan Index futures 

https://links.sgx.com/FileOpen/20200701_...eID=622059

This month is a watershed as the FTSE Taiwan Index futures exceed MSCI Taiwan Index futures. The transition from MSCI to FTSE for its derivative business is happening smoothly.

https://api2.sgx.com/sites/default/files...020_FA.pdf

[weijian]

Zero coupon CBs with strike price that is ~30% premium to prevailing market conditions. The cost of equity here is really low, in my opinion.

SGX issues EUR240 million in maiden convertible bond issuance

The three-year zero-coupon bonds can be converted into ordinary shares of SGX at an initial conversion price of S$13.0944, which is a 32% premium over the closing price of S$9.92 on 1 February 2021. This represents a negative yield to maturity of 0.331% per annum.

https://links.sgx.com/FileOpen/20210202_...eID=646985

[CigarButts]

Nice. zero coupons bonds for an option to purchase SGX shares at $13.09. Does not really seem normal to me. Judging from the fact that SGX is trading at less than $10 and it was still oversubscribed by 4 times. My radar does pick up that there might be something else which the bond investors have priced in addition to this bond.

Supposedly possible upcoming catalyst I guess would be digital assets plays.

Vested in SGX.