MSCI Inc. has entered into a licensing agreement with Singapore Exchange Limited (SGX) to launch futures and options contracts based on a suite of MSCI indexes. These contracts will cover global developed and emerging markets, enhancing the tools available for institutional investors to manage risk across multi-regional equity portfolios.
The agreement broadens MSCI’s collaboration with SGX to include flagship global and regional equity benchmarks, single-country developed and emerging market indexes, and EM Asia sector indexes. Henry Fernandez, Chairman and CEO of MSCI, emphasised the importance of this expansion, stating, “This agreement reflects our commitment to ensuring that MSCI’s most critical benchmarks are accessible to investors wherever they manage risk.”
SGX’s Chief Executive Officer, Loh Boon Chye, highlighted the exchange’s role in creating markets that cater to global investors’ needs. “As portfolios are increasingly managed across regions, themes and benchmark suites, our comprehensive MSCI suite gives investors a broader platform to manage global equity risk through one trusted venue,” he said.
The new futures and options contracts will be centrally cleared in the Asia-Pacific time zone, providing institutional investors with a reliable venue for managing multi-regional equity portfolios. This development marks a significant step in offering investors enhanced capabilities to navigate complex market environments with confidence.
The collaboration between MSCI and SGX underscores a shared commitment to providing robust infrastructure and market access, facilitating better risk management and investment decisions for global investors.
