SINGAPORE (May 27): Singapore Exchange (SGX) will reduce its licence agreement with MSCI from February 2021, it said in an announcement on Wednesday.

With the exception of MSCI Singapore products, the reduced partnership will see SGX’s licence agreement with MSCI expire. MSCI Singapore futures and options will continue to remain listed after February 2021.

“SGX has had a long and fruitful partnership with MSCI. Over the past 23 years, we have worked together to build an international offshore market for global investors to access Asia through regional and single-country products,” says Loh Boon Chye, CEO of SGX.

“We will work closely with the relevant stakeholders in managing their open interest as we gradually discontinue our MSCI equity index futures and options contracts, except for MSCI Singapore, next year,” he adds.

“While this may have a near-term impact on our equities derivatives open interest, our multi-asset portfolio shelf has reached a critical mass. SGX’s track record in derivatives positions us well to refresh and grow our suite of pan-Asian access products in a new direction,” says Loh.

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SGX shares closed 7 cents higher, or 0.7% up, at $9.90 on Tuesday, before the announcement.