London Stock Exchange celebrates FTSE Russell’s partnership on derivatives with Singapore Exchange (SGX)

Today, London Stock Exchange markets were opened by Singapore Exchange (SGX) and FTSE Russell to mark the launch of Futures contracts tracking ESG indexes.

SGX FTSE Emerging ESG Index Futures
SGX FTSE Emerging Asia ESG Index Futures
SGX FTSE Asia ex Japan ESG Index Futures
SGX FTSE Blossom Japan Index Futures

As sustainable investing becomes more and more mainstream, SGX has partnered with FTSE Russell to offer its first suite of products to provide access and facilitate integration of Environmental, Social and Governance (ESG) factors into investment portfolios.
Backed by top pension funds and aligned with UN Sustainable Development Goals, the indexes are designed to improve the ESG profile while maintaining risk/return characteristics similar to the broader equity markets.

  • For the broader regional contracts, the underlying indexes are part of the FTSE ESG Index Series, where constituents’ weights are tilted in favour of companies that demonstrate strong ESG practices whilst decreased exposure to companies that do not.
  • For the Japan contract, the underlying index is the FTSE Blossom Japan Index based on FTSE4Good inclusion rules which include only the highest rated ESG companies.

Loh Boon Chye, Chief Executive Officer at SGX comments: “We are pleased to expand our risk-management service offering to global clients through our partnership with FTSE Russell. Our award-winning multi-asset platform offers single-point access for investors to tap opportunities within the pan-Asia capital structure, based on broad strategies, sectors and themes.

SGX has always been focused on developing solutions that support the growth ambitions of our customers. We are a trusted venue for global institutions to manage their portfolio exposure; we connect the world to Asia. The early success of our new FTSE Taiwan and Indonesia futures demonstrates the leadership of our derivatives ecosystem and the complementary strengths of SGX and FTSE Russell.

As we continue to expand our partnership, we are also pushing the sustainability agenda with the launch of our pioneering suite of ESG derivatives. As the exchange partner of choice, we are excited to promote sustainable solutions that drive meaningful change across the world’s financial markets.”

Waqas Samad, Group Director, Information Services for London Stock Exchange Group and CEO of FTSE Russell adds: “I’m delighted to host this LSE Market Open today to mark a new milestone in our relationship with Singapore Exchange (SGX).

Congratulations to SGX on the expansion of the FTSE Russell index-based derivatives offering with the launch of 5 new FTSE Russell index-based futures.  This now brings the total number of FTSE Russell index-based futures listed on SGX to 30.

This is yet another milestone in our long-standing partnership that has created the most liquid offshore risk management markets for global investors based on the FTSE China A50 Index, the FTSE Taiwan RIC Capped Index and the FTSE Indonesia Index, among others.

We are especially proud that this latest expansion includes futures based on sustainable investment index strategies, including the FTSE Emerging ESG Index and the FTSE Blossom Japan Index.

These indexes leverage our FTSE ESG ratings and nearly two decades of experience in sustainable investment solutions, to provide investors with the ability to integrate environmental, social and governance standards into their investment process.

As a leading provider of multi-asset, global indexes and investment solutions, our partnership with SGX, the leading Asia-based international derivatives exchange, truly provides global investors with world-class solutions and services.”

Risk Warning

Index-based Investing - The value of investments and any income from them can go down as well as up and investors may not get back the amount originally invested. Where overseas investments are held the rate of currency exchange may also cause the value of such investments to fluctuate.

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