SINGAPORE: SGX Group to Launch Interest Rate Derivatives

Tuesday March 12 2024

On 12^th March 2024, Singapore Exchange (SGX Group) to introduce short-term interest rate futures linked to the Singapore Overnight Rate Average (SORA) and Tokyo Overnight Average Rate (TONA), as global investors increasingly seek more transparent and cost-effective tools to hedge and trade fluctuations in interest rates.

Three-month SORA and TONA Futures contracts are targeted to be launched in the second half of this year, subject to regulatory approval. These contracts build upon SGX Group’s current suite of long-term interest rate futures – 10-year Full-Sized and Mini Japanese Government Bond (JGB) futures – which have attracted diverse international market participants.

The three-month TONA Futures will also complement SGX Group’s portfolio of Japanese derivatives including JGB futures, SGX Nikkei 225 Index futures and options, as well as SGX USD/JPY FX futures. This comes on the back of market expectations that Japan’s negative interest rate policy will come to an end, together with rising interest in the world’s third largest government bond market and record-highs in the Nikkei 225 equity benchmark.

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