The Philippine Stock Exchange and Singapore Exchange signed an agreement to develop the Philippines’ derivatives market.
Derivatives, which refer to financial instruments whose values are derived from contracts between two parties, include swaps, futures and options.
The PSE and Singapore Exchange said in a joint statement they would jointly explore the development and promotion of Philippines futures and options to address the demands of international investors.
The parties said the first product to be launched would be Philippines index futures, based on the MSCI Philippines index. The product is targeted for listing on the Singapore Exchange in the fourth quarter.
Both exchanges also agreed to study the listing of derivatives products on PSE in due course in response to the needs of the markets.
“We are delighted to have SGX as a partner in the building of the Philippines derivatives market. We look forward to leveraging on SGX’s experience and network, alongside growing investment interest in the Philippines, to bring the country’s capital markets to new heights,” PSE president and chief executive Hans Sicat said.
Singapore Exchange chief executive Magnus Bocker said he was looking forward to the strengthened partnership with PSE “and the opportunity to advance both our derivatives markets.”
“With this futures contract, investors are assured of an efficient and effective risk management tool as they tap opportunities offered by the Philippine economy. The addition of this contract also builds upon SGX’s offering a one-stop access into Asia’s capital and growth markets,” Bocker said.
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