SINGAPORE : The Singapore Exchange is planning to introduce Single Stock Derivatives (SSDs) in the first quarter of next year.
SSDs are exchange-listed derivatives on single underlying securities which are listed or quoted on SGX.
They will be the first margin-based exchange traded product in Singapore.
The new product class will allow investors to buy into an underlying stock at an agreed price on the day of trade.
The trade will then be settled at a future date.
The proposed launch is aimed at expanding the current suite of equity derivatives available to investors.
SSDs will pave the way for more varied exchange traded equity derivatives products to be introduced and allow for hedging and arbitraging opportunities.
Its proposed introduction will involve additions and amendments to the SGX Securities Trading Rulebook, as well as the Central Depository Clearing Rulebook.
The exchange is inviting public comments on the proposed amendments to its business rules. - CNA/ms
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment