MSCI Inc. has signed a licensing agreement with the Hong Kong Futures Exchange Ltd. to introduce 37 futures and options contracts in Hong Kong based on a suite of indexes in Asia and emerging markets.
The agreement expands on MSCI’s relationship with the Hong Kong Exchanges and Clearing Ltd., or HKEX, the owner of the Hong Kong Futures Exchange. It follows the 2019 announcement that the HKEX plans to introduce futures contracts based on the MSCI China A index, subject to regulatory approval.
“MSCI’s mission as a provider of tools, services and insights for the global investment industry is to help investors around the world better understand and navigate investment opportunities and risks,” said Henry Fernandez, chairman and chief executive officer at MSCI, in a press release. “As we continue to see increasing demand from global investors in enhancing their risk management capabilities, we are pleased to license the HKEX to use our indexes for this expansive suite of new trading and risk management tools for global investors.”
The planned HKEX futures and options contracts are subject to regulatory approval.
“Bringing enhanced liquidity to our markets, this builds on our stated strategy and our 2019 commitment to launch MSCI China A index futures in Hong Kong,” said Charles Li, chief executive of the HKEX. “It comes at a time when Hong Kong’s derivatives market is going from strength to strength and represents another significant development in continuing to build the breadth, depth and attractiveness of Hong Kong’s vibrant financial markets.”
MSCI also plans to continue licensing the MSCI Singapore index to the Singapore Exchange, or SGX, for a listed futures contract, and is allowing the HKEX to list a contract based on the index. Licensing of all other MSCI indexes to the SGX expires in early 2021.