SGX launches ESG derivatives

The Singapore Exchange (SGX) has launched a new suite of ESG derivatives.

The exchange has developed the new contracts in partnership with FTSE Russell as part of the its SGX FIRST initiative. The exchange says the indices provide a combination of improved ESG profile while maintaining risk and return characteristics largely similar to benchmark equity indices. The new derivatives are:

SGX FTSE Emerging ESG Index Futures
SGX FTSE Emerging Asia ESG Index Futures
SGX FTSE Asia ex Japan ESG Index Futures
SGX FTSE Blossom Japan Index Futures

All four contracts have been certified by the Commodity Futures Trading Commission (CFTC), enabling market participants to trade them directly from the U.S.