Singapore Exchange (SGX):
India Single Stock Futures

Single Stock Futures (SSFs) are derivatives that track price movements on the underlying stocks. Similar to other futures contracts such as equity index futures, SSFs are standardised contracts listed and cleared on exchanges. SSFs are essentially an agreement between two parties, a buyer and seller of the stock. The buyer promises to pay the specified price at a predetermined date while the seller is obligated to deliver the stock at the same predetermined date. On SGX, SSFs are cash settled and there is no physical delivery of the underlying stock.

SSFs provide an efficient and simple alternative to trading company stocks and offer a broad range of trading strategies to meet a variety of portfolio management needs, such as enhancing the performance of their equity portfolios, protecting their investments against adverse price movement or to diversify risk. As with other futures contracts, investors can trade SSFs on leverage by putting margins as required by the exchange.

While SSFs provide certain benefits, investors should be aware of the risks associated in trading SSFs. There is no stock holder privileges such as voting rights or dividend payouts when there is a dividend distribution in that stock. As SSFs trade on leverage, there is a risk of losing more than the initial capital invested into any SSF contract. Investors have to assess the product's suitability for their investment profile before trading SSFs on SGX.

Since its launch, SSF notional volume rose to US$1.55 billion (109,826 contracts traded), and open interest stands at 6,569 contracts (US$103.7m) as of 21 Sep 2018.

Source: Singapore Exchange

Source: Singapore Exchange

CONTRACT SPECIFICATIONS  FACTSHEET  KEY INFORMATION  

For more details on SGX Single Stock Future Contract Specifications , please refer to:

http://www.sgx.com/wps/portal/sgxweb/home/products/derivatives/financials/ssf/india_ssf/contracts

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