Japan is the second biggest securities borrowing market in the world. Given the general wealth of the populace and a low-yield environment, there is a high demand for structured products and plenty of trading desks occupy their time attempting to replicated those payouts. SGX already offers long-dated dividend futures and equity options; to address the final piece of the puzzle, it will soon be rolling out equity repo futures.
That’s a new interest rate product and a first for Asia, but it’s far from the only thing on SGX’s plate. In this far ranging interview with SGX’s Head of Derivatives Michael Syn, he talks about the drastic change coming to marine fuel standards in 2020 and why SGX, as a shareholder in the Baltic Exchange, is focused on the future of freight. Syn also paints an upbeat picture for continued impressive growth in its FX futures complex.
Produced by Mike Forrester