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Contract Specifications
As a pioneer in Asian equity futures and options, the Singapore Exchange Derivatives Trading Limited (SGX-DT) was the first market in Asia to list equity index futures. Over the years, its range of Asian equity futures and options has expanded to include Japan, Taiwan, India, Hong Kong and Singapore.
Centre of Asian Equity Index Trading
Users from around the world are attracted by the numerous advantages of the SGX-DT. Since its first equity futures product was launched in 1986, the SGX-DT has become a prominent trading centre for Asian equity indexes.
Today, it offers one-stop access to the world's widest range of Asian stock index futures. In the coming years, users can expect the range of stock index contracts to expand as the Exchange has identified this as a core development area.
Index Partners
The underlying indices of all stock index futures and options contracts listed on the SGX-DT are compiled by highly respected organisations with a long history of experience and expertise in this area.
These firms are FTSE Xinhua Index Limited (FXI), India Services & Products (IISL), Morgan Stanley Capital International (MSCI), Nihon Keizan Shimbun (NKS) and Singapore Press Holdings (SPH).
Data on the indices, computed and published by these index providers, are available through a wide range of print media, wire and news services as well as the following websites:
* Nikkei 225 Index
First compiled in 1949, the Nikkei Stock Average or Nikkei 225 is a price-weighted index of 225 issues listed on the first section of the Tokyo Stock Exchange. Computed using the Dow method and managed by Nihon Keizai Shimbun Inc (NKS), the index is disseminated through major price reporting media and is used worldwide as the representative index of the Japanese stock market. By trading SGX Nikkei 225 futures, users can track the broad movements of Tokyo stock market.
* MSCI Taiwan IndexSM
The MSCI Taiwan IndexSM is a free float-adjusted market capitalisation index. Index represents Taiwanese companies that are available to investors.
The index aims for 60% coverage of the total market capitalization and the chosen list of stocks includes a representation sampling large, medium and small capitalization companies, taking into account the stock liquidity.
The index is compiled fully and independently by Morgan Stanley Capital International (MSCI).
* MSCI Asia APEX 50 IndexSM
The MSCI Asia APEX 50 IndexSM is a free float market capitalisation weighted index. The index aims to serve as a liquid proxy to the broader MSCI AC Asia ex Japan index, a benchmark index widely followed by investors investing in Asia. The index captures the performance of the 50 largest stocks in the Asia ex Japan region. To ensure the highest level of tradability, a stringent set of investability screens are applied during the index construction process.
* MSCI Hong Kong+ IndexSM
Compiled fully and independently by Morgan Stanley Capital International (MSCI), the MSCI Hong Kong+ IndexSM is market capitalization weighted and has a base date of 31 December 1969 with a value of 100.
In comparison with the Hang Seng Index, the MSCI Hong Kong+ IndexSM has a broader based representation with a combined market capitalization of US$330 billion - representing about 68% of the Hong Kong stock market. In line with this broad capitalisation, the MSCI Hong Kong+ IndexSM tracks the volatility of the Hang Seng Index closely with a 99.995% daily correlation, making it an almost perfect substitute to the Hang Seng Index.
The MSCI Hong Kong+ IndexSM differs from the standard MSCI Hong Kong IndexSM in that it includes HSBC Holdings. All other constituents and weights remain the same. HSBC is included at the full weight of both its GBP and HKD lines of stock. As HSBC represents a large part of the trading volume of the Stock Exchange of Hong Kong, the goal when developing the MSCI Hong Kong+ IndexSM was to provide the best proxy for the stock market in Hong Kong as the basis for a futures contract, as well as to reflect the opportunity set for investors in the region.
The MSCI Hong Kong+ IndexSM is calculated in local currency in Hong Kong without dividends. The selection criteria for the MSCI Hong Kong+ IndexSM 's component companies emphasizes liquidity, free float and large market capitalization.
This facilitates trading of the shares in the index and readily enables arbitrage between the futures and cash markets, thus keeping the futures contract fairly priced.
* MSCI Singapore IndexSM
First published in May 1993 and with historical data going back to January 1988, the MSCI Singapore Free (SiMSCI) IndexSM helps investors to identify broad market trends in the Singapore stock market.
Compiled fully and independently by Morgan Stanley Capital International (MSCI), this market capitalization-weighted index tracks the prices of stocks listed on SGX, representing a sample of small-, medium- and large-capitalized companies.
The SiMSCI IndexSM is widely used as a performance benchmark of the Singapore stock market.
* Straits Times Index
The Straits Times Index (STI) replaced the Straits Times Industrials Index (STII) on 31 August 1998 and started life where the STII ended - at 885.2 points. The index was constructed by the Singapore Press Holdings. The STI was launched right after a major sectoral re-classification of listed companies by SGX. The re-classification did away with the "industrials" category and this meant that the STII must be replaced.
The primary objective of the index is to reflect the daily trading activity of stocks on SGX. Its secondary aim is to reflect the performance of the Singapore economy. At the time of launch, the constituent stocks accounted for 78 per cent of the average daily traded value over a 12-month period and 61.2 per cent of the total market capitalisation.
The STI is value-weighted and covers all sectors. As it is value-weighted, the influence of the large capitalisation constituent stocks on the index is moderated by weighting them by their free float percentages.
Real-time calculation of the index is done by SGX.
* CNX Nifty Index
The CNX Nifty Index is compiled by the India Index Services & Products Ltd. (IISL), a joint venture between the National Stock Exchange of India Ltd. (NSE) and CRISIL Ltd. (formerly the Credit Rating Information Services of India Limited). The CNX Nifty Index is a well diversified market capitalisation weighted index comprising 50 large and highly liquid securities traded on the NSE. The Nifty index covers about 23 sectors of the economy and approximately 60% of the total market capitalisation of the underlying India bourse.
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FTSE Xinhua China A50
Index
The FTSE Xinhua China A50 Index is a real-time tradable index comprising the largest 50 A Share companies by full market capitalisation.Designed to meet the needs of Qualified Foreign Institutional Investors (QFIIs), it can be used as a basis for on-exchange and derivative products such as the SGX FTSE Xinhua China A50 Index Futures, for mutual funds as well as a performance benchmark.
The FTSE Xinhua China A50 Index covers shares listed on both the Shanghai and Shenzhen stock exchanges and is calculated every 15 seconds with a market open time at 09:30 (local time) and closes at 15:15 (local time).The index is calculated and published in Renimbi.A total return index (TRI) value that takes into account reinvested dividends is published daily at the end of the day.
