The Singapore Exchange (SGX) derivatives market will launch Asia-Pacific government bond futures

Singapore Exchange (hereinafter referred to as 'SGX') announced today that its derivatives market will launch Asia-Pacific government bond futures, with trading commencing on April 20. The new contracts aim to help international investors manage sovereign bond interest rate risks associated with existing asset allocations in India, Indonesia, Malaysia, Thailand, and the Philippines. Driven by interest rate differentials and the demand for diversified real yield allocation, global investors have increased their investment in emerging Asian sovereign bond markets. This product launch is a timely response to market needs.

Image source: Singapore Exchange Group

These contracts are among the first regional government bond futures to be listed on SGX, with pricing, margining, and settlement all conducted in US dollars, providing investors with a transparent and standardized tool to hedge sovereign bond interest rate risks within the most commonly used currency system in global asset management.

This futures product is based on FTSE Russell's newly launched Asia Pacific Liquid Government Bond Index Series, which follows its globally recognized methodology for constructing government bond indices. The product references a portfolio of government bonds covering the aforementioned five markets, offering three maturity options—3-year, 5-year, and 10-year—to help investors flexibly manage duration and risk exposure across sovereign yield curves.

Head of Interest Rates at SGX Group Derivatives Market, William Chin, said: 'The Asian sovereign bond market is gradually becoming a core allocation in global fixed income portfolios. As market participation continues to broaden, efficiently hedging and trading Asian sovereign bond rates while avoiding fragmented access frameworks is increasingly important. Government bond futures provide global investors with a low-friction and transparent solution, enabling them to manage risk exposures and engage in regional interest rate markets on a scalable basis.'

Scott Harman, Global Head of Fixed Income, Currency and Commodities at FTSE Russell, said: "The launch of this new series of indices aims to provide global investors with transparent and tradable solutions. Built upon the robust methodology used in our established government bond indices, this index series offers a consistent and liquid foundation for Singapore Exchange to develop related futures products, helping investors manage sovereign bond interest rate risk and participate more efficiently in the evolving local bond markets in Asia."

The launch of these products builds on Singapore Exchange's multi-asset derivatives platform, which covers commodities, equities, interest rates, and foreign exchange. With the addition of these new offerings, Singapore Exchange’s product suite now expands into sovereign interest rate exposure, further solidifying its position as a regional risk management hub within global investment portfolios.

Click the link, to learn more about product details.

[1] Source: FTSE Russell: Opportunities in a fragmented world: emerging Asia's bond markets, 17 December 2025.

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