Singapore Exchange Limited (SGX) is inviting public comments on proposed rule amendments to facilitate the launch of a new options contract – the SGX Options on MSCI Singapore Index Futures (SGO) – for trading in the Singapore Exchange Derivatives Trading Pte Ltd (SGX-DT) market.
The proposed SGO contract complements the MSCI Singapore Index Futures (SG) contract, which was launched in September 1998 and has seen its volume grow steadily since. With an average daily trading volume of nearly 19,000 contracts this year and Open Interest of close to 50,000 contracts as at end-November 2008, the SG is a liquid contract traded by the professional investment community. The introduction of the SGO contract will enhance market depth.
In today’s volatile market environment, the SGO will be an essential product for participants in the futures and warrants markets to express a view on, or hedge their exposure to, the Singapore market.
The underlying instrument of the SGO is the SG contract, traded in the SGX-DT market. The SG contract itself is based on the MSCI Singapore Free Index – a free-float adjusted, market capitalisation-weighted index representing a sampling of large, medium and small cap stocks of the Singapore securities market, compiled by Morgan Stanley Capital International (MSCI).
The consultation paper, which explains the rationale and proposed amendments in detail, will be available on SGX website at www.sgx.com from today. Market participants and members of the public can forward their feedback and suggestions on the above proposed amendments from today until 8 January 2009 via email and either by post/courier or fax:
Email: rules@sgx.com
Post/Courier: Singapore Exchange Limited
2 Shenton Way
#19-00 SGX Centre 1
Singapore 068804.
Attn: Mr John Lim
Regulatory Policy
Risk Management and Regulation
Fax: 6534 2207 / 6534 0092
