The Singapore Exchange (SGX) today launched its MSCI China Free Index (SM) futures and options contracts as part of its efforts to become the exchange of choice for trading in China, and follows last month’s upbeat Q3 FY2016 metrics, as reported by Finance Magnates. The SGX MSCI China contracts have also secured the approval of the Commodity Futures Trading Commission (CFTC), enabling U.S. investors to trade them directly from within the U.S.
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The contracts are USD denominated and track the MSCI China Free Index (SM), which comprises large and mid-cap companies listed outside mainland China. The MSCI China Free Index (SM) has a broad representation of sectors including financial, information technology and consumer companies. The SGX MSCI China contracts therefore provide international investors with risk management tools linked to the key sectors that are driving China’s economic growth today.
Commenting on the launch, Michael Syn, Head of Derivatives at SGX, said: “The SGX MSCI China contracts respond to a growing need for broader risk management, price discovery and benchmarking tools that reflect China’s economy today. The CFTC certification of the contracts will enable us to meet U.S. investor demand for access to China’s growth opportunity, and further expand our international network.”