Singapore - Singapore Exchange Limited (SGX) Tuesday announced three initiatives to develop its options market.

The plan would enhance the existing SGX Nikkei 225 Index Options and SGX MSCI Taiwan Index Options contracts; launch the SGX MSCI Singapore Index Options contract; and introduce a web-based electronic trade registration system.

The initiatives would be implemented on 6 April 2009, the exchange said in a statement.

"In today's volatile market environment, options contracts are essential tools for market participants to express a view on, or hedge their exposure to, the underlying markets," it said.

It said the measures were response to requests from customers to enhance the contract specifications of the SGX Nikkei 225 Index Options and the SGX MSCI Taiwan Index Options by increasing the number of tradable strikes and contract months to cover a tenure of up to three years.

With current average daily trading volume above 15,000 contracts, the MSCI Singapore Index Futures is a liquid contract traded by the professional investment community, it said.

To support the registration of negotiated large trades including options, the exchange said it was introducing a web-based system for members and customers.

(dpa)