SGX seeks views on Nikkei Dividend Index Futures

Comments on contract can be posted on SGX website from until 19 April.

Singapore Exchange (SGX) is inviting public feedback on the proposed contract specifications for the SGX Nikkei Stock Average Dividend Point Index Futures contract (Nikkei Dividend Index Futures contract), which will be targeted for the derivatives market.

The Nikkei Dividend Index Futures is a standard, cash-settled futures contract based on the Nikkei Stock Average Dividend Point Index. The index is calculated by Nikkei Inc. (Nikkei) and is based on accumulated dividends received by investors of constituent companies of the Nikkei Stock Average over a calendar year.

In recent years, institutional investors have sought tools to manage and hedge dividend exposure. The proposed Nikkei Dividend Index Futures will provide investors with an exchange-traded instrument to do so. Investors in the Nikkei Dividend Index Futures will be able to take a view on the value of the Nikkei Stock Average Dividend Point Index on expiry date. In addition, market participants can benefit from arbitrage opportunities related to dividend performance. The proposed Nikkei Dividend Index Futures will complement SGX’s existing suite of Nikkei-based products.

Subject to regulatory approval, SGX hopes to launch the proposed Nikkei Dividend Index Futures contract by the third quarter of 2010.

The consultation paper, which details the rationale and proposed contract specifications, will be available on the SGX website www.sgx.com starting Apr. 6. Market participants and members of the public can forward their feedback and suggestions on the proposed contract from April 7 until April 19, 2010. Market participants and members of the public can forward their feedback and suggestions on the proposed contract via:

Email: rules@sgx.com

Post/Courier: Singapore Exchange Limited
2 Shenton Way, SGX Centre 1
#19-00, Singapore 068804
Attn: Samuel Lim
Regulatory Policy

Fax: +65 6534 2207

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit