🦎 ANALYST WATCH | 31 JULY 2026
SGX SINGAPORE EXCHANGE
WHAT THE ANALYST SAYS
DBS Group Research, analyst Rui Wen Lim, views SGX's newly signed MSCI licensing agreement as strategically positive but expects limited near term earnings contribution. The deal covers up to 100 potential new contracts, roughly 40 futures and options in an initial phase, spanning global developed market benchmarks, Asia Pacific single country indices, and emerging Asia sector indices, a significant broadening from SGX's prior MSCI shelf.
The note frames this as a meaningful rebuilding of the MSCI relationship after 2020, when MSCI shifted licensing to Hong Kong and SGX shares fell 11.6% in a day, with management then guiding a 10 to 15% hit to FY21 profit from the lost Taiwan contracts. DBS sees the new agreement supporting SGX's derivatives powerhouse ambition and cross sell potential with FX products, though it stresses actual earnings upside depends on how quickly liquidity builds in whichever contracts SGX rolls out, and does not put a number on the expected impact.
NOTE
For the full note, check DBS Group Research's published report or your broker platform.
Not financial advice. Iggy's Forensic Compliance Standards apply.
