Singapore, Jan 14, 2026, 15:35 SGT — Regular session
- Shares of Singapore Exchange dipped in afternoon trading after a report surfaced about discussions on launching new Asian bond futures
- SGX may expand its interest-rate derivatives offerings with new contracts potentially launching in the first half of 2026
- SGX’s first-half FY2026 results, due Feb. 5, are the next major catalyst
Shares of Singapore Exchange Ltd slipped slightly on Wednesday, with investors digesting reports that the bourse is considering adding new Asian government bond futures. By 3:35 p.m. Singapore time, the stock was down roughly 0.2% at S$17.69, having fluctuated between S$17.67 and S$17.83 earlier in the session, compared to Tuesday’s close of S$17.72. (Google)
This story is crucial now since SGX’s growth strategy depends largely on derivatives and market services. In those areas, a fresh contract can quickly generate turnover and clearing fees when volatility spikes.
Bond futures are contracts allowing traders to lock in a bond price for a future date, effectively hedging against interest-rate fluctuations. Should SGX gain momentum in Asia rates, it could create a fresh avenue for global funds seeking both exposure and a hedge.
The Straits Times, quoting sources close to the matter, reported that SGX has been in talks with treasury officials from global banks about launching futures tied to government bonds from India, Indonesia, Malaysia, the Philippines, and Thailand. The discussions covered maturities of three, five, and 10 years per country, with contracts settled in U.S. dollars and priced off the average yield of a basket of up to three bonds. For India, these could include bonds under the Fully Accessible Route, which eases foreign investor access. “For bond futures to be successful, the underlying bonds must be liquid,” said Rajeev De Mello, global macro portfolio manager at Gama Asset Management. He added traders will need the ability to short cash bonds. The Straits Times also pointed to clearing house data showing overseas investors have poured roughly $21 billion into Indian sovereign bonds since June 2024. (The Straits Times)
If approved, the contract suite would join SGX’s current interest-rate offerings, which already feature Japanese government bond futures and short-term rate products linked to SORA and TONAR. SORA stands for the Singapore Overnight Rate Average, a crucial local benchmark, while TONAR refers to Japan’s overnight average rate.
For SGX, the key is where the flow lands. Large bond futures franchises abroad have proven how these products can stick once hedge funds and banks start layering strategies around them.
Asian markets edged higher Wednesday, pushing regional stocks to new peaks as safe-haven metals held strong. This mix tends to boost trading activity across venues, even if some stocks take a breather. (Reuters)
There’s a catch. Talks remain in early stages, and details might shift. Bond futures often struggle when the underlying cash market lacks liquidity or if investors can’t easily trade and short the bonds needed to align futures prices.
Traders are waiting on SGX to confirm details around contract design — which bonds make up the pricing basket, margin requirements, and clearing procedures. They’ll also be looking for early indications of bank and fund participation beyond initial interest.
The cash market’s afternoon session extends until 17:00 local time, allowing traders to adjust positions late as the bond-futures narrative unfolds across desks. (SGX Rulebooks)
SGX’s next major event lands on Feb. 5, with first-half FY2026 results due before the market opens. At 9:00 a.m., CEO Loh Boon Chye and CFO Daniel Koh will host a briefing. Investors are keen to hear updates on derivatives momentum and the pipeline for new contracts. (Sgx)
