Singapore Exchange (SGX)

[weijian]

It makes sense for SGX to implement the FTSE Taiwan index as the first mitigation action. This is quite consistent with their prior actions in the last crisis with NSE on the Niffy contracts.

The FTSE index and MSCI index are actually quite similar in a sense that the top 10 components are the same companies (you cannot get too far off based on market cap) but weightages especially the top stock TSMC is actually very different with FTSE putting in a limit for individual stock. I reckon the difference in TSMC's weightage (MSCI:37.6% FTSE: 18.94%) would actually be the most significant difference between both contracts? I am assuming that other factors like contract sizes and expiry dates etc can be mostly equalized with SGX as the same offerer/clearing house.

I thought this change would be a very good case study and test on the supposed "network effects" that stock exchanges are expected to enjoy.

MSCI Taiwan index: https://api2.sgx.com/sites/default/files...0%29_0.pdf

SGX to introduce SGX FTSE Taiwan Index futures 

https://links.sgx.com/FileOpen/20200701_...eID=622059

The mitigation actions are considerably in place now.

SGX significantly expands all-Asia waterfront for equity derivatives 

The new futures offer benchmarks including Indonesia, Malaysia, Philippines, Taiwan, Thailand an Vietnam, meeting our customers’ increasing demand for institutional-grade exchange solutions in Asia which offer superior operational and capital efficiency

https://links.sgx.com/FileOpen/20200811_SGX_significantly_expands_all-Asia_waterfront_for_equity_derivatives.ashx?App=Announcement&FileID=626964