Broker Name: DBS Group Research
Date of Report: 24 July 2026
Excerpt from DBS Group Research report.
Report Summary
Stock: Singapore Exchange Ltd (SGX SP)
Action: BUY
12-month Target Price: SGD 26.40
Current Price (as of report): SGD 23.70
- Key Idea: SGX entered a strategically significant license agreement with MSCI, granting access to up to 100 new contracts, with 40 futures and options to launch initially. This partnership expands SGX’s coverage across major developed and emerging markets and deepens its relationship with MSCI.
- Growth Implications: The agreement is expected to materially broaden SGX’s institutional customer base, enhance its global derivatives position, and create cross-selling opportunities, especially with its FX derivatives. This supports SGX’s medium-term derivatives growth and strengthens its long-term competitive positioning as a global derivatives powerhouse.
- Earnings Impact: Near-term earnings contribution is likely to be limited as liquidity and open interest build, but successful roll-out could provide meaningful upside over the longer term.
- Strategic Importance: The deal reverses some of the negative impacts from MSCI’s 2020 decision to move licensing for certain derivatives to Hong Kong and positions SGX for improved valuation multiples and growth prospects.
Recommendation: BUY, with a 12-month target price of SGD 26.40.
Above is an excerpt from a report by DBS Group Research. Clients of DBS Group Research can access the full research report from the broker’s website.
DBS Group Research research website
