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SGX Market Updates - "SGX today launched the MSCI Singapore Net Total Return (USD) Index Futures to broaden its existing suite of Asian Net Total Return Futures"

SGX Market Updates - "SGX today launched the MSCI Singapore Net Total Return (USD) Index Futures to broaden its existing suite of Asian Net Total Return Futures"






21 August 2017




Market Updates























SGX today launched the MSCI Singapore Net Total Return (USD) Index Futures to broaden its existing suite of Asian Net Total Return Futures



  • With this latest addition, SGX is now the only exchange in Asia offering both price return and net total return versions of MSCI equity index futures contracts, thereby providing the broadest range of derivatives to investors seeking to access the five key Asian markets; China, India, Taiwan, Indonesia and Singapore.


  • The new contract will also provide investors a deeper reach into Singapore’s equity market by capturing the total performance of Singapore stocks.


  • The MSCI NTR Index Futures Contracts have been certified by the Commodity Futures Trading Commission (CFTC), enabling US investors to trade directly from within the US.






Enhanced access to Asia’s 5 key markets


Singapore Exchange (SGX) today launched the MSCI Singapore Free Net Total Return (USD) Index to complement its existing suite of Asian Net Total Return Futures contracts.


The MSCI NTR Index Futures Contracts offer market participants exposure to a different set of indices based on net total return (NTR) indices. Net total return indices consider price movement of the constituent stocks as well as dividend, interest, rights offerings and other distributions (net of tax) realised over a period of time, whereas price return indices only consider price movements of constituent stocks. As a result, market participants trading the MSCI NTR Index Futures contracts do not need to make assumptions on dividend distribution as dividends are re-invested on a net-tax basis following the established MSCI methodology.


With the addition of these new contracts, SGX is now the only exchange in Asia to offer both price return and net total return versions of MSCI equity index futures contacts, thereby providing the widest range of derivatives to investors seeking to access Asia’s four largest emerging markets – China, India, Indonesia and Taiwan, which collectively represent over 50% of the MSCI Emerging Market NTR IndexSM – and the developed market of Singapore.


Asia continues to be a key driver of the global economy with the Asian Development Bank (ADB) estimating a growth rate for 2017 of 5.7%. This growth rate is expected to result in greater demand for derivatives products that meet the evolving financial needs of global investors.


Alternative listed solutions to OTC equity index swaps


The MSCI NTR contracts are designed to meet increased demand for clearing solutions amid a changing global regulatory landscape for uncleared derivatives. SGX futures contracts deliver a cost-effective platform for over-the-counter (OTC) and buy-side participants to trade and clear NTR products in the form of futures in Asia. Investors will be able to mitigate capital costs and collateral usage with central clearing, and also benefit from portfolio efficiencies across SGX products in the form of margin offsets.




CROSS-MARGIN OFFSET (as of 21 August)

Contract pairings

Margin Offset

SGX MSCI Singapore Free NTR Index Futures

SGX MSCI Singapore Free Index Futures


SGX Nifty 50 Index Futures


SGX FTSE China A50 Index Futures


SGX MSCI Malaysia Index Futures


SGX MSCI India NTR USD Index Futures


SGX Mini Nikkei 225 Index Futures




SGX MSCI China NTR USD Index Futures


SGX MSCI Taiwan Index Futures


SGX MSCI Indonesia NTR USD Index Futures









Contract Specifications


Underlying Stock Index

MSCI Singapore Free Net Total Return (NTR) USD IndexSM

Index Price Information













Contract Size

US$50 x SGX MSCI Singapore NTR USD Index Futures price ≈ US$ 54,655*

(*Assuming futures price of 1,093.10 as of 17 August 2017 close)

Initial Margin*


Contract Months

8 nearest serial months and Mar, Jun, Sep and Dec months on 3-year cycle

Minimum Price Fluctuation

0.1 index point (US$5)

Trading Hours

(Singapore Time)

T session: 7.00am - 4.00pm

T+1 session: 4.30pm - 4.45am (next day)

Last Trading Day

Third Friday of the contract month

Settlement Basis

Cash settlement

Final Settlement Price

The official closing price of MSCI Singapore Free NTR USD IndexSM for the Last Trading Day, rounded up to 4 decimal places

Negotiated Large Trade (NLT)

Minimum 10 lots

Position Limit

20,000 lots (higher limits available upon approval)

Futures Price Information

(Vendor: Ticker)

Bloomberg: BNSA Index

Reuters: 0#SNSG:

* as of 21 August 2017. Initial margins are subject to change. The latest margin schedule can be found here


For more information on MSCI NTR Index Futures, please visit






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