Singapore Exchange Limited (SGX) and index provider FTSE Group (FTSE) have signed a memorandum of understanding (MOU) to explore the creation of internationally recognised indices for the Singapore and regional markets.
Under the MOU, SGX and FTSE will undertake a consultative study on the feasibility of introducing indices for the trading and benchmarking of financial products such as institutional and retail funds, Exchange Traded Funds, and derivatives contracts. The indices will be designed using international standards, will be free-float adjusted and will be based on the Industry Classification Benchmark (ICB).
“We are happy to establish this relationship with FTSE,” says Hsieh Fu Hua, SGX CEO. “The development of indices based on international standards and recognised methodology will facilitate the growth of the local and regional markets, and provide more opportunities for the creation of new investment products.”
Mark Makepeace, Chief Executive, FTSE Group, says FTSE is “honoured” by the appointment.