Singapore Exchange and FTSE Russell have signed a long term strategic paertnership agreement that will see the firms launch new Asian and Emerging Markets focused, multi-asset index derivatives offerings.
The core products will be anchored around FTSE Russell’s global benchmark indices for fixed income, listed real estate, global equities and currencies, catering for expansion to meet institutional investors’ demand for SGX solutions in multi-asset, ESG, dividend, sector and duration strategies.
The deal is seen as vital for SGX as it comes ahead of the expiration of a similar agreement with index provider MSCI in 2021 – the cessation of which was announced at the end of May.
“We are excited to bring our strategic partnership with FTSE Russell to a new level.,” says Loh Boon Chye, chief executive officer of SGX. “Together with FTSE Russell, we have built one of the largest and most liquid FTSE equity index derivatives franchises for Asian markets. SGX’s multi-asset platform provides global investors with a single point of access into Asia, offering extensive and efficient investment and risk management tools covering all major asset classes. With this expanded agreement with FTSE Russell, we will develop more unique tools to match evolving investor needs. FTSE Russell’s leadership in the world of investable multi-asset products and ESG, together with SGX’s leading position and unrivalled capabilities in Asian derivatives, will drive even greater impact and value creation for our customers.”
Waqas Samad, CEO FTSE Russell and group director, information services at LSEG, adds, “We are delighted to expand our successful relationship with SGX with this new strategic partnership, which will help support growing client and investment demand across Asia for access to index-based listed futures and options markets as well as ETFs. As a leading provider of investment decision making tools, including the global, multi-asset class FTSE Russell indexes, we are committed to working with our exchange partners around the world in developing the risk management markets that help global investors efficiently manage their investment process. We also look forward to partnering with SGX to develop a range of index-based products to support the increasing need for sustainable investment solutions developed to globally recognised ESG standards, providing investors with further choice, diversification and risk management opportunities for their portfolios.”
Both SGX and FTSE Russell have committed to jointly drive global marketing, product research and customer adoption and both parties will also collaborate closely in product and platform development between their information services businesses. In the coming months, SGX and FTSE Russell say they will continue to roll out products that are highly relevant to the evolving needs of global investors who are facing a sense of urgency to diversify their portfolios in search for investment opportunities and cost efficiencies. “The need for high-quality access to Asia has become increasingly pertinent given the region’s idiosyncratic risks exacerbated by ongoing geopolitical uncertainties,” they say.