Singapore Exchange has inked a new licensing agreement with MSCI that will allow it to list up to 100 futures and options contracts tied to global and Asia-Pacific equity indices. The deal, announced by the exchange, marks a significant expansion of SGX's derivatives lineup and deepens its relationship with the index provider.
What the deal covers
Under the agreement, SGX can launch futures and options on a broad range of MSCI indices, including those tracking developed and emerging markets across the Asia-Pacific region and beyond. The exact mix of contracts has not been disclosed, but the license covers up to 100 products. MSCI is one of the world's largest index compilers, and its benchmarks are widely used by institutional investors for asset allocation and hedging.
SGX already offers a handful of MSCI-linked derivatives, such as the MSCI Singapore Index futures. The new license gives the exchange room to add contracts on indices like MSCI Asia ex Japan, MSCI Emerging Markets, and MSCI World, among others. The move positions SGX to compete more directly with other regional exchanges that offer similar products.
For SGX, the deal is a bet on growing demand for Asia-focused risk management tools. Global investors have been increasing their exposure to Asian equities, and the exchange wants to capture more of the hedging and trading flow that comes with that. The new contracts could also attract more liquidity to SGX's derivatives market, which already hosts popular products like the SGX FTSE China A50 futures.
MSCI benefits from wider distribution of its indices. Licensing deals like this generate recurring revenue and reinforce the brand's role as a standard for global equity benchmarks. The agreement is non-exclusive, meaning MSCI can still license its indices to other exchanges.
SGX has not yet announced a timeline for when the first new contracts will be available. The exchange will need to finalize contract specifications, secure regulatory approvals, and set up trading and clearing infrastructure. Market participants will be watching for details on margin requirements and fee structures.
The deal comes as SGX continues to diversify beyond its traditional cash equity business. In recent years the exchange has pushed into fixed income, commodities, and data services. The new derivatives lineup could be a key part of that strategy — but for now, the specifics remain under wraps.
