The FINANCIAL — Singapore Exchange Limited (SGX) announced on February 9 that a list of 28 securities will form the underlying for the inaugural batch of Extended Settlement (ES) contracts that will start trading on 20 February 20091.
The 28 securities were selected after meeting liquidity and market capitalisation requirements, as well as interest from market participants. Except for the final three on the list, all the securities below are component stocks of the Straits Times Index (STI).
The 28 securities are:
1. Capitaland Limited
2. CapitaMall Trust 3. City Developments Limited
4. Cosco Corporation (S) Ltd
5. DBS Group Holdings Ltd
6. Fraser and Neave, Limited
7. Genting Int’l Public Ltd Co
8. Golden Agri-Resources Ltd
9. Keppel Corporation Limited
10. Keppel Land Limited
11. Neptune Orient Lines Limited
12. Noble Group Limited
13. Olam International Limited
14. Oversea-Chinese Banking Corp
15. SembCorp Industries Ltd
16. SembCorp Marine Ltd
17. Singapore Airlines Ltd
18. Singapore Exchange Limited
19. Singapore Press Hldgs Ltd
20. Singapore Tech Engineering Ltd
21. SingTel
22. StarHub Ltd
23. United Overseas Bank Ltd
24. Wilmar International Limited
25. Yanlord Land Group Limited
26. ComfortDelGro Corporation Ltd
27. SMRT Corporation Ltd
28. streetTRACKS STI Exchange Traded Fund (ETF)
ES contracts will be a new product class on the SGX Securities Trading (SGX-ST) market. Its launch is aimed at expanding the current suite of equity products available to investors. The new product allows investors to buy into an underlying stock listed on SGX at the transacted price on the day of the trade, for settlement at a specified future date.
Investors will have to put up an initial margin to trade ES contracts, which will be marked to market. ES contracts provide investors with an exchange-listed and -traded alternative to unregulated over-the-counter trades.
The key features of ES contracts are detailed in the Annex.
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