INTERNATIONAL: SGX Expands Clearing Relationship with CME Group

Tuesday November 10 2020

On 9^th November 2020, Singapore Exchange (SGX) announced it is expanding the scope of its unique Mutual Offset System (MOS) with CME Group, offering global investors unmatched, round-the-clock access to trade and clear on the leading derivatives marketplaces in Asia and the United States.

SGX on 23^rd November will launch five new regional and single-country futures contracts based on Net Total Return and Price Return indices calculated by FTSE Russell, further broadening its shelf of pan-Asia benchmark equity derivatives.

The SGX FTSE Emerging Market and SGX FTSE China H50 Price Return futures are planned to be available for MOS from the first half of 2021. The effective date will be announced in due course upon fulfilment of the necessary rule amendment procedures. CME Group and SGX will align the contract specifications on each exchange, enabling international customers to transfer positions from one venue to the other for maximum flexibility and efficiency in managing portfolio risk.

Singapore International Monetary Exchange or SIMEX, which became part of SGX, pioneered the revolutionary MOS alongside the Chicago Mercantile Exchange in 1984. The landmark clearing link has grown to become one of the world’s most successful and longest-running derivatives collaborations between global exchanges.

SGX FTSE Equity Net Total Return (NTR) Index Futures launching on 23^rd November 2020:

• SGX FTSE Emerging Market NTR (USD) Index Futures
• SGX FTSE Japan NTR (USD) Index Futures
• SGX FTSE New Zealand NTR (USD) Index Futures

SGX FTSE Equity Price Return Index Futures launching on 23^rd November 2020, targeted to be made available for MOS from the first half of 2021:

• SGX FTSE Emerging Market (USD) Index Futures
• SGX FTSE China H50 (USD) Index Futures

Click on the above link for further information.