ASEAN Exchanges target SP providers via index series

The recent launch of an expanded FTSE ASEAN Index Series by ASEAN Exchanges is expected to create new opportunities to structured products providers seeking to offer exposure to the region.

The new suite of tradable ASEAN indices which includes the FTSE ASEAN All-Share Index, FTSE ASEAN Stars Index and FTSE ASEAN All Share Ex-Developed Index will be the building block towards creating broader benchmark indices, sectors indices and new ASEAN centric products that will bring more ASEAN tradable opportunities for investors as well as enhancing liquidity among the exchanges.

“ASEAN, one of the fastest growth regions of the world, is an exciting capital market and increasingly now as investors will have a one-point access to an aggregated and comprehensive ASEAN content,” said Charamporn Jotikasthira, president of the Stock Exchange of Thailand. “Our teams have been diligently working to ensure that there are ASEAN centric products for retail investors, which will lead to opportunities for ETFs, amongst other structured products.”

The new expanded index series will increase visibility and transparency of ASEAN capital markets and create a larger universe of stocks for all ASEAN markets with the inclusion of constituents from Vietnam to the FTSE ASEAN Index Series (previously comprising the constituents from the five markets of Thailand, Malaysia, Singapore, Indonesia and the Philippines).

The new FTSE ASEAN Index Series includes the FTSE ASEAN All-Share Index as the broad headline benchmark representing 90-95% of the investable market capitalisation in the region. The existing FTSE ASEAN Index Series was originally initiated in partnership with the ASEAN Finance Ministers to promote ASEAN as a regional equity market grouping.

Since the launch of ASEAN Exchanges in Bali in April 2011, a number of key initiatives have been rolled out including the ASEAN Trading Link, an ASEAN exchanges website, and most recently, in April 2014, the appointment of Deutsche Bank for post-trade custody and settlement services.

The seven ASEAN Exchanges have a combined market capitalisation of approximately USD2tr with more than 3,600 companies listed on their exchanges.