Singapore Exchange (SGX) today announced it will launch dual
currency trading for ETFs on 15 June, enabling investors to
trade foreign-currency denominated ETFs in Singapore dollars.
The move will provide investors with trading flexibility in
accessing ETFs denominated in a foreign currency.
SGX worked with issuers BlackRock's iShares and
CIMB-Principal Asset Management to offer the following ETFs
with a secondary trading counter in Singapore dollars:
CIMB ASEAN 40 ETF
CIMB S&P Ethical Asia Pacific Dividend ETF
iShares Barclays Capital Asia Local Currency 1-3 Year Bond
iShares Barclays Capital Asia Local Currency Bond Index ETF
iShares Barclays Capitial USD Asia High Yield Bond Index
iShares J.P. Morgan USD Asia Credit Bond Index ETF
iShares MSCI India Index ETF
The ETFs will be fungible, i.e. an investor can buy and/or
sell the ETF in US or Singapore dollars regardless of the
currency in which it was first bought and/or sold. All
the above ETFs are cash based full replication ETFs.
Mr Nels Friets, Head of Securities at SGX said: "With this
new offering from SGX, investors can enjoy trading
flexibility and cost efficiency while benefitting from
investing in ETFs. Issuers will also benefit from a wider
pool of investors as those who prefer to trade in Singapore
dollars enter the market. We are delighted to have the
support of BlackRock and CIMB-Principal in offering investors
increased access to our wide suite of ETFs."
SGX introduced dual currency trading for securities on 22
March 2012. Hutchison Port Holdings Trust was the first
listed security to launch dual currency units.