Singapore Exchange (SGX) and Eurex, Europe's largest derivatives exchange, announced today that they are partnering to launch the SGX EURO STOXX 50 Index futures and options on futures for the first time in Asia.
The partnership is based on a license agreement between the global index provider STOXX Limited and SGX.
SGX will list U.S.-dollar denominated EURO STOXX 50 Index futures and options on futures in the second half of 2010, subject to Monetary Authority of Singapore approval. SGX and Eurex will jointly market and promote the U.S.-dollar based contracts as part of the collaboration efforts between the two exchanges.
Mr. Chew Sutat, Head of Corporate & Market Strategy at SGX, said, "The SGX EURO STOXX 50 futures and options on futures contracts will complement our suite of Asian products, providing global customers with one-stop access to Asian and European equity markets as well as trading opportunities between SGX and Eurex. Customers also will have first-mover advantage to react to weekend or overnight European and U.S. market news and manage their European exposures during Asian hours."
Mr. Michael Peters, member of the Eurex Executive Board, said, "Through our cooperation, we extend the user base of Europe's most liquid index derivatives contract. This will result in new trading and hedging opportunities globally and should further increase the liquidity of this benchmark product. Our partnership will also strengthen our position in Asia as a global exchange."
Mr. Hartmut Graf, chief executive officer, STOXX, added, "We are pleased to partner with Singapore Exchange as it is a highly recognized institution in Asia. Through this cooperation, STOXX ensures increased attractiveness of the EURO STOXX 50 Index for investors in Asia, and takes another step to expand its European success story globally."
The EURO STOXX 50 Index derivatives traded at Eurex are euro-denominated. The futures recorded an average daily volume (ADV) in the first half of 2010 of more than 1.6 million contracts while the options had an ADV of another 1.2 million contracts.