Shares & Derivatives
MSCI and SGX (SGX: S68) Licensing Breakup: Will SGX’s Dividends be Affected?
By Seedly  •  June 2, 2020
On 27 May (Wed), Singapore Exchange (SGX) announced that the contract for the license agreement it has with MSCI Inc. will not be renewed beyond February 2021. This means that aside from MSCI Singapore Index products, the license for all other MSCI derivatives and options products will not be listed on the SGX (SGX: 68) after Feb 2021. MSCI Inc. announced that it will move its range of derivatives and options products from Singapore to Hong Kong.

SGX Share Price Tumbles

After this announcement, SGX shares plunged 17.68%. The move was seen as a blow to SGX as MSCI will be signing a contract with their competitors, the Stock Exchange of Hong Kong (SEHK).
SGX Stock Price
Source: Google
In addition, SGX revenues in 2021 will be affected as well as the MSCI contract consists of around:
  • 15% of SGX’s equity derivatives daily average volume (DAV)
  • 12% of total derivatives DAV.
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By Seedly
Launched in 2016, Seedly helps users make smarter financial decisions with its budgeting app which allows its 40,000 users to sync up their financial accounts and better manage their cash-flow. Last year, we introduced a new community feature which allows users to crowdsource knowledge from peers before making a financial decision.
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