SINGAPORE (May 27): Singapore Exchange (SGX) will reduce its licensing agreement with MSCI from February 2021, it said today in a statement. Uni Essentials COVID-19 Bank Economic Outlook: Prices and Long-Term Expectations: Questions and Answers with Experts In August, SGX developed its partnership with FTSE Russell to jointly develop a new multi-asset derivatives offering focused on Asian and emerging markets. Such an approach will likely reinforce HKEX`s ambitions in the derivatives field, an area in which it wanted to develop. „The reduction of the licensing agreement with MSCI has derailed SGX`s medium-term thesis in the interim, fuelled by the growth of derivatives,“ Lee noted. This was taken following MSCI`s decision in May to transfer index licenses from Singapore to Hong Kong for certain derivatives. In February, the pact with the city-state will be limited to products based on singapore`s MSCI indices. SGX has partnered with FTSE Russell to launch new offerings and has signed a large market covering several asset classes. With the exception of MSCI Singapore products, SGX`s licensing agreement with MSCI expires. MSCI Singapore Futures and options remain listed after February 2021. Singapore Exchange has made a dent in its medium-term thesis after announcing that its licensing agreement for MSCI ex-Singapore products expires in February 2021, where its impact on the stock market`s earnings is expected to overflow by 2022, according to a statement from analysts at DBS Group Research. Competition is intensifying Meanwhile, Hong Kong Exchanges and Clearing (HKEX) has entered into a major licensing agreement with MSCI and introduced 37 futures and options. SGX aims to launch a derivatives trading link with India by the end of next year.
The threat of a loss of most of its Msci index futures and options contracts on the Singapore Exchange (SGX) is likely to result in lower yields, growth that hinders growth and increased competition within the derivatives sector. „SGX has a long and successful partnership with MSCI. Over the past 23 years, we have worked together to build an international offshore market for global investors… (Click on the link for the full story on theedgesingapore.com). Singapore Exchange Ltd. is suspending the MSCI Taiwan Index as it begins to reduce its cooperation with MSCI Inc. due to market uncertainty for the remainder of 2020, Bloomberg News reported on October 5, referring to Michael Syn, the stock exchange`s head of cash and equity operations. „From our perspective, it may be difficult for SGX to replicate products similar to those of its existing MSCI offerings. However, SGX has confirmed its continued desire to expand and deepen Asia`s coverage by developing more derivatives on its own or seeking cooperation with other partners,“ added Lee. SINGAPORE (BLOOMBERG) – The Singapore Exchange (SGX) is starting to cut its pact with MSCI months earlier than expected by advancing year-end market uncertainty to accelerate the decommissioning of its largest derivative in partnership with the index provider.