HKEx introduces the first Apac sustainable multi-asset product platform
Hong Kong Exchanges and Clearing Limited (HKEx) has launched Asia’s first multi-asset sustainable investment product platform, Sustainable and Green Exchange (Stage) in aid of its support of the growing global demand for sustainable finance.
The Stage platform features 29 sustainable-themed products from leading Asian corporations. The listed sustainable products include sustainability, green, and transition bonds from issuers spanning over a variety of sectors including utilities, transportation, property development and financial services as well as ESG-related exchange traded products.
There is a need for information about sustainable products and ESG data - Wilfried Yiu
“The opportunities in sustainable finance in Asia are growing rapidly. There is a need for information about sustainable products and ESG data, and we hope that Stage will help meet that demand,” said Wilfred Yiu (pictured), HKEx’s head of markets.
The platform will allow issuers to equip investors with more information on their sustainable investment products, while promoting transparency and facilitating access.
Issuers included on Stage must disclose additional information on their sustainable investment products, which includes the use of proceeds reports, as well as annual post issuance reports.
This additional information will enable investors to access a trusted, easy-to-use platform for the region’s fast growing ‘green sector'. At the same time, the data will act as a benchmark for issuers seeking to raise funds for their sustainable projects and will also contribute to the standardisation of sustainability metrics.
“HKEx is at the forefront of driving the sustainable finance agenda in the region. With the launch of Stage, we are seeking to support the growth of Asia’s sustainable finance market by increasing awareness, accessibility, data availability, and transparency of green and sustainable investment products,” said Grace Hui, HKEx’s head of green and sustainable finance.
UOB first to use Bloomberg Barclays MSCI Global Green Bond Index
Singaporean bank UOB will be the first to adopt the Bloomberg Barclays MSCI Global Green Bond Index for its environmental, social and governance (ESG) investment offering, as part of its move to integrate ethical considerations into its full suite of solutions.
The Bloomberg Barclays MSCI Global Green Bond Index was launched in 2014 and is part of a set of green bond indices in the Bloomberg Barclays MSCI ESG fixed income benchmark offering.
“We are seeing growing customer interest in sustainable investments, including in green bonds. The Bloomberg Barclays MSCI Global Green Bond index is a globally-recognised standard and adds to the accountability of the ESG solutions we offer to our customers,” said Jacquelyn Tan (right), head of group personal financial services at UOB.
According to Ji Zhuang, APAC head of indices at Bloomberg, the index delivers transparency to the ever-expanding green bond market, which has recently crossed the US$1 trillion mark in total issuance.
This is giving investors a tool to evaluate performance and assess risk of projects with direct environmental benefits.
South Korean regulator implements new framework for financial benchmarks
The Financial Services Commission (FSC) has adopted a supervisory regulation that outlines details concerning financial benchmark management while the Financial Benchmark Act took effect on 27 November 2020.
The Act requires administrators of critical benchmarks to establish a committee for the management of critical benchmarks. The enforcement decree provides details regarding the composition and operation of the management committee.
The FSC is expected to follow up via a review committee meeting to determine the criteria for designating critical benchmarks and will start procedures in the first half of 2021 for the designation of these benchmarks and administrators.
The FSC can establish a review committee to discuss the designation and cancellation of critical benchmarks and other important matters regarding financial benchmarks.
Spectrum Markets on track for successful first year of trading
Pan-European marketplace Spectrum Markets has reported a record total of 66.7 million securitised derivative products that were traded in November 2020, a 19% increase over the previous month and a figure that sets a record.
From the launch of Spectrum markets, trading has been available in countries that include Germany, France, Italy, Spain, Sweden, Norway, the Netherlands, Ireland and Belgium.
On 4 November, Spectrum recorded 13,187 transactions while more than six million securitised derivatives were traded on 10 November.
The firm attributed the breakdown of securitised derivatives trading volumes in November to indices (88.3%), FX (8.1%) and commodities (3.6%) while top traded underlyings include the S&P 500 with a share of 24.2%, followed by the OMX with 23.6% and the DAX with a share of 19.7%.
Deutsche Börse becomes top stakeholder at Quantitative Brokers
Deutsche Börse has completed the purchase of a majority acquisition in Quantitative Brokers in which its co-founders Christian Hauff and Robert Almgren will retain a significant shareholding. The co-founders will also remain in their current roles as chief executive officer and chief scientist, respectively.
The transaction was announced in September and closed on 1 December 2020, and the alliance is anticipated to bring Deutsche Börse closer to the buy-side value chain, drive product adoption and order flow attraction in the exchange traded derivatives segment.
According to Deutsche Börse, a key growth accelerator is the capitalisation on the growing importance of buy-side firms.
Quantitative Brokers is a fintech platform that delves into advanced execution algorithms and data-driven analytics for futures, options and interest rate markets on a global scale.
Since signing off on the transaction in September, Quantitative Brokers has widened its reach in the Apac region by launching its execution algorithms on the Singapore Exchange derivatives market.