Singapore Exchange (SGX)

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(11-11-2020, 09:17 AM)weijian Wrote:
(01-07-2020, 02:49 PM)weijian Wrote: 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

SGX very clever. When MSCI don't continue with SGX they cut off support ASAP while HK can only ramp up in March 2021? Then trader need to find something hence move trader to FTSE. Wala... overnight MSCI contract all turn into FTSE contract and the traded volume/value stay in SGX. Brilliant move for an SOE... which we don't see too often in LionLand.
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Well, the FTSE/MSCI Taiwan index futures are doing very decently on SGX derivatives platform and I reckon it is because of the presence of TSMC on the index.

So, there will be the first marquee company on MSCI Singapore, SEA (parent of Shopee) whom will dominate the index in a year's time. Granted, it is already very easy to hedge/bet SEA as it is listed in NYSE since 2017, and so any positive impact on SGX's MSCI Singapore index futures remains to be seen.

These are a better sign of times to come, with Grab also doing a US listing soon. If the equity business cannot capture these marquee companies, well at least, there is still a chance that the derivatives can.

Eligible foreign listings to join MSCI Singapore indices in four steps

Brian Freitas, an analyst who publishes on Smartkarma, estimates Sea's potential weight on the MSCI Singapore Index would be 1.73 per cent at the May 2021 SAIR, increasing to 8.1 per cent, 14.99 per cent and 26.07 per cent, respectively, over the subsequent reviews.

https://www.businesstimes.com.sg/compani...four-steps
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SGX and NZX seal partnership on dairy derivatives to unlock growth

Singapore and Wellington - Singapore Exchange (SGX) and New Zealand’s Exchange (NZX) have today signed a strategic partnership agreement to unlock and accelerate the growth potential of NZX’s dairy derivatives.

This partnership brings together the complementary capabilities of the SGX and NZX to scale up market distribution and liquidity in the global dairy derivatives markets. It will take effect in the second half of 2021, subject to regulatory approvals. This follows a Heads of Agreement that was mutually signed in October 2020 to explore the listing of NZX’s suite of dairy contracts on SGX’s trading and clearing platforms.

More details in https://links.sgx.com/1.0.0/corporate-an...growth.pdf
Specuvestor: Asset - Business - Structure.
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