SGX wants input on stock index options

30 December 2010 – Singapore Exchange (SGX) is consulting the public on proposed introduction of Options on the S&P CNX Nifty Index on SGX’s derivatives platform.

The proposed Options contract complements the popular S&P CNX Nifty Futures, which had an average daily trading volume of 55,966 contracts and an open interest of close to 198,000 contracts in November 2010. The introduction of the new Options contract offers opportunities for a wider variety of trading strategies on SGX derivatives platform and meets growing market demand for exposure to the fast-growing Indian economy.

The underlying index of the Options contract is the S&P CNX Nifty Index. This is a free-float adjusted, market capitalisation-weighted index representing a diversified 50-stock index and accounting for 21 sectors of the Indian economy.

The proposed Options contract will be prescribed as a security under the Securities and Futures Act. SGX derivatives Trading Members and Clearing Members must hold the licence to deal in securities in order to trade and clear this Options contract respectively. Their Registered Representatives must also meet the requisite regulatory requirements for dealing in securities.

SGX seeks feedback on the proposed Options contract specifications and the proposed amendments to the S&P CNX Nifty Futures contract specifications, Futures Trading Rules and SGX-DC Clearing Rules arising from the introduction of the Options contract.

The consultation paper will be available on the SGX website www.sgx.com from today until 14 January 2011. Market participants and members of the public can send in their comments and suggestions via email and either by post/courier or fax:

Email: rules@sgx.com
Post/Courier: Singapore Exchange
2 Shenton Way, SGX Centre 1
#19-00, Singapore 068804

Attention: Lewis Loo
Fax: 6534-2207

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