Singapore Exchange Limited (SGX) has announced it is to extend its derivatives trading hours for contracts with T+1 sessions to accommodate growing international demand for Asian equity derivatives.

The extension from 11 January 2010 will allow traders to trade derivatives on SGX till 1am Singapore time of the following day.

Contracts included under the extended trading hours include the SGX Nikkei 225, SGX MSCI Taiwan, SGX MSCI Singapore and SGX S&P CNX Nifty (India) index futures, which have received CFTC no-action letters for offer and sale in the United States.

"With the longer hours, traders will be able to respond to market movements and manage their risk on SGX across global time zones, including after the close of European equity markets. As we continue to develop the global appeal of our Asian derivatives contracts, this extension reflects our commitment to meeting the needs of international customers," said Janice Kan, senior vice president and head of product development at SGX.

The news follows the announcement that Asia's newest derivatives exchange, the Singapore Mercantile Exchange, is set to start trading in the first quarter of this year having been given the go-ahead by regulators last year.