Tinku Gupta, SGX
"We will also continue to grow our strong partnerships with global index providers to further our reach and expertise for both our securities and derivatives markets."
Singapore - New index business SGX Index Edge will offer index services tailored for issuers, asset managers and investors in Asia. SGX intends to build a regional index business, developed on the backbone of the exchange's infrastructure - technology, operations, governance and strong regulatory framework - as well as its knowledge of the region.
The SGX branded indices intend to provide greater transparency and profile SGX's securities and derivatives markets to investors. Targeted at Asian product issuers and investors looking for customised index solutions, SGX Index Edge addresses the increasing demand for index-linked investment opportunities across the region.
Since October 2014, SGX has conducted a beta launch on a series of futures-based indices - SGX Access Asia indices - tailored for product issuers of Exchange-Traded Notes (ETNs), OTC (Over-the-Counter) products and retail structured products. The Access Asia suite of 60 indices are distributed through SGX's network of brokers, data vendors, Independent Software Vendors, other exchanges and trading firms. Plans are also underway to offer bespoke Asia-based index solutions for product issuers across the region, including thematic and strategy-based equity indices for the Singapore market.
SGX recently became the first exchange in Asia to becomes a member of the Index Industry Association (IIA), which represents the global index industry to promote sound practices that strengthen markets and serve the needs of investors.
Loh Boon Chye, CEO of SGX, said: "As Asia's most international exchange and a leading market infrastructure for investors across Asia, we are in a unique position to develop Asia-focused index capabilities, as a natural extension of SGX's existing suite of products and services. The launch of SGX Index Edge demonstrates our ability to continually innovate to position SGX strongly for the long-term as we look towards becoming the pan-Asian index provider of choice."
Tinku Gupta, head of Market Data and Connectivity of SGX, added, "Offering index services to diversify the market data business is common amongst exchanges. It helps us in attracting new institutional channels that are increasingly turning towards index-linked investment solutions for their investors. While we will create SGX branded indices, we will also continue to grow our strong partnerships with global index providers to further our reach and expertise for both our securities and derivatives markets."