In May 2020, Singapore Exchange (SGX) announced the departure of its partnership with MSCI as the American company has decided to host its equity index futures and options outside of Singapore starting February 2021. The market reacted negatively to the news as SGX estimated a potential 10-15% drop in its 2021 revenue as a result of this.
At the same time, HKEX inked a deal with MSCI to launch derivatives from Asia and emerging markets. Further, the HKEX continues to draw investors’ attention with its upcoming high-profile IPO of Ant Group. So how does SGX aim to grow in the future?
Here are five things I learned from the 2020 SGX AGM.
- Over the past five years, revenue and net profit grew at compound annual growth rates (CAGRs) of 7% and 8% in 2020 respectively. Revenue and net profit recorded 16% and 21% year-on-year growth in 2020 respectively because of double-digit growth across all of its operating segments.