SINGAPORE (July 1): The Singapore Exchange (SGX) announced that it is introducing a futures contract on the FTSE Taiwan RIC Capped Index (FTSE Taiwan) on Wednesday.
The contract will enable global investors to gain exposure to a wide representation of large and mid-capitalisation Taiwan stocks, and will meet fund managers’ diversification objectives. It will also provide investors around the world with round-the-clock access, as well as an effective and cost-efficient way to invest in the Taiwan stock market.
SGX says it expects to receive certification from the Commodity Futures Trading Commission for the offer and sale of the contract in the US shortly after the launch.
The Taiwan economy is the seventh largest in Asia and occupies a key position in the global industrial and technology value chain. The broad-based and diversified FTSE Taiwan index with a capping methodology covers nearly 80% of Taiwan’s listed companies by market capitalisation, and offers strong correlation with other major Taiwan benchmark indices.
The FTSE Global RIC Capped Indexes are designed to limit concentration in any single security to help investors meet the Regulated Investment Company (RIC) concentration requirements for US-registered funds.
The contract will be launched on July 20.
See also: Asian Currency Index falls to two-decade low on Fed, tariff bets
“International investors own some 40% of Taiwan’s equities, making its market an important part of any Asian investment portfolio. We are glad to work with FTSE and our partners to meet the rising demand of U.S. and European investors for access and investment exposure to Taiwan, with consistent diversification to manage risk,” says Michael Syn, head of equities at SGX.
Shares in SGX closed 28 cents higher, or 3.5% up, at $8.34 on Tuesday.
