Singapore exchange to start China A50 index in third quarter

Singapore Exchange (SGX) aims to launch SGX FTSE China A50 Index options in the third quarter of this year to cater to the risk management needs of global investors.In a statement, SGX said subject to final regulatory approval, the new contract would be listed as options on the SGX FTSE China A50 Index futures (SGX China A50 futures).It said strong industry support and active trading had propelled SGX China A50 futures to become one of SGX’s fastest-growing derivatives contracts, hitting a new annual trading volume record of 22 million contracts in 2013. SGX Head of Derivatives Michael Syn said the introduction of the SGX China A50 index options was timely as offshore interest in the China A-share market has picked up and hedging needs from institutional investors and asset managers had become more acute and sophisticated.