SGX

SGX: has issued a series of announcements, which demonstrates the steps it is taking to boost its competitiveness.

i) SGX will open new hubs in Chicago and London, the first for an Asian exchange, which will enable global investors to access the offshore market for Asian equity futures, including the China A50 futures (the only offshore futures contract for China's domestic A-share market).
These hubs are part of SGX's $250m technology initiative, and are expected to come online once pre- trade risk controls are made available to participants next month.
HK and Tokyo have been targeted as the next possible locations.

ii) SGX also announced a plan to link its data centres with those of Eurex and vice versa so that their customers have easy connectivity to each other's markets.
As part of the partnership, Eurex will move its existing access point in Singapore into the SGX co-location data centre. In return, Eurex will act as a network service provider to SGX's customers in Europe. The link is expected to start in mid-2012.

iii) NYSE Technologies, the commercial technology division of NYSE Euronext, is extending its Secure Financial Transaction Infrastructure (SFTI) network to SGX's data centre here. This will allow all 1,600 SFTI clients to access SGX's derivatives and securities market while qualified investors here will be able to access NYSE Liffe, the European-based derivs exchange of NYSE Euronext, through their Order Management Systems to the SGX Data Centre. This will broaden SGX’s reach to liquidity pools in major financial cities, and facilitate cross-border trading between markets.

iv) SGX is launching two new instruments: an S&P CNX Nifty Futures Real-time Index for investors interested in exposure to India (wef today); and an MSCI Indonesia Index Futures contract (est launch in 2Q12).
The S&P CNX Nifty Futures Real-time Index will track the performance of a portfolio holding a single SGX Nifty Futures contract reinvested monthly. This in turn is based on the S&P CNX Nifty, which is the main index used by the National Stock Exchange (NSE) of India and comprises 50 large and liquid companies drawn from 25 sectors of the Indian economy.

SGX shares last closed at $6.90. Technically, the stock has been stabilizing over the past wk since the large drop on 6 Mar. The risk reward appears favorable with support at $6.80 (coincide with 200day MA), vs next resistance at $7.20. Near term, the Stochastics are emerging from oversold levels, while RSI has returned to neutral levels and has started to hook up again.