The Singapore Exchange (SGX) has obtained approval for US investors to directly trade its FTSE China A50 and MSCI Asia APEX 50 futures contracts from within the United States.
On 27 January 2012, the Commodity Futures Trading Commission (CFTC) certified that these contracts, which are based on the FTSE China A50 and MSCI Asia APEX 50 equity indices, may be offered and sold to individuals in the US.
The SGX-listed FTSE China A50 futures contract is the only offshore contract providing international investors with easy exposure to China’s domestic A-share market. A total 3.1 million FTSE China A50 futures contracts were traded on SGX in 2011, six times that of the previous year. The MSCI Asia APEX
50 futures is a tradable proxy to the broader MSCI AC Asia ex Japan Index, one of the most widely followed benchmark indices used by investors investing in Asia.
“With Asia’s growth story standing out amid the ongoing economic slowdown in the West, US investors seeking opportunities in the East will benefit from the CFTC’s decision. This approval will also make such listed derivatives more widely available at a time when investors are increasingly concerned about
counterparty risks and the mitigation of such risks.” says Paul Davies, Chairman of the Futures Industry Association (FIA) Asia. FIA is a leading trade organisation for the futures, options and OTC cleared derivatives markets.
“The CFTC’s approval, together with our extended trading hours, will enable US investors to easily access the world’s fastest growing companies and economies. We look forward to providing international investors with more opportunities to access Asia and manage their risks,” says Michael Syn, Head of Derivatives at SGX.