SGX Facing More Competition, Payout Scrutiny After MSCI Deals
- Singapore Exchange faces further competition on China futures
- Dividend policy will be keenly watched, says Citi’s Kong
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Singapore Exchange Ltd. faces heightened competition, a drop in profits and close monitoring of its dividend policy after MSCI Inc.’s decision to shift index licensing for some derivatives to Hong Kong, analysts said.
MSCI will stop licensing for most derivatives products on SGX’s platform early next year, while separately agreeing to let Hong Kong Exchanges & Clearing Ltd. sell futures and options contracts based on its gauges. The move has renewed concerns about competition for China futures traded in Singapore, after Hong Kong last year announced that it will start offering futures on the MSCI China A Index. Here’s what analysts had to say.