By Chris Wright
In September, the SGX FTSE Xinhua China A50 Index Futures contract, developed by the FTSE Group, began trading on the Singapore Exchange. The US-dollar contract is “the first internationally available futures contract” based on China’s A share index, says the SGX, which is pitching it as a “convenient and cost-effective way to gain exposure” to domestic Chinese stocks, and also a useful portfolio management instrument for investment funds and equity-linked products structured around the Chinese market.
But the contracts started trading under a cloud after SSE Infonet, a data management firm that is 90% owned by the Shanghai Stock Exchange, said it intended to sue FTSE/Xinhua Index for breach of contract. SSE claims...
