SGX: SGX FTSE Taiwan Index Futures Sees Strong Growth
Since launch, liquidity in the SGX FTSE Taiwan Index Futures has grown significantly with more than 770,000 contracts traded or US$34 billion. Bid-ask spreads are comparable to the SGX MSCI Taiwan Index Futures, quoted consistently at 1 tick spread during the T Session. For the first half of September 2020, SGX FTSE Taiwan Index Futures volumes were more than 60% of SGX MSCI Taiwan Index Futures volume while average daily turnover was 31,000 contracts* or US$1.4 billion. Open interest has increased to US$400M or 9,200 contracts while participation in the contract has grown to more than 100 trading entities across 21 clearing members. The contract is U.S. CFTC approved and available for trading on all Taiwan and Singapore holidays, while offering attractive margin offsets against other liquid SGX products.
Following client demand for an exchange facilitated service to migrate MSCI Taiwan futures to FTSE Taiwan Futures, SGX has introduced a liquidity switch service, which serves as the most cost-efficient way for clients to migrate their positions (i) All exchange fees waived, (ii) No bid-offer spreads to cross, and (iii) No legging risk. SGX has since successfully conducted two runs, with the next opt-in run scheduled to take place from 15th -17th October. A final run will take place on 30th October 2020. Do reach out to Phillip if you would like to find out more information.