Singapore Exchange to offer Nikkei Dividend Index Futures

New index aimed to meet investor demand and highlights 20-yr partnership between SGX and Nikkei.

Singapore Exchange (SGX) said Mar. 29 that it will offer a new futures contract based on the soon-to-be-launched Nikkei Stock Average Dividend Point Index. Nikkei Inc. (Nikkei) will begin calculating the index in April 2010.

Subject to regulatory approval, SGX targets to launch the new SGX Nikkei Dividend Point Index futures contract by the third quarter of 2010. The Nikkei Stock Average Dividend Point Index is calculated based on accumulated dividends received by investors from constituent companies of the Nikkei Stock Average over a calendar year. Further details on the Index can be found here.

Mr Chew Sutat, Executive Vice President and Head of Market Development of SGX, said, “We are pleased to deepen our cooperation with Nikkei, with which we have enjoyed a strong 20-year relationship. The SGX Nikkei Dividend Index futures will complement our existing suite of Nikkei-based products and meet investor demand for exchange-listed derivatives to hedge and manage dividend exposure.”

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