Futures-based ETFs and volatility products coming: SGX

Concerns about the risks of swaps-based exchange-traded funds may be encouraging ETF issuers to use futures contracts to manage their products, particularly given the greater focus on counterparty risk and delta-one trading following the emergence of UBS's $2.3 billion trading loss. Fund houses are preparing ETFs based on the new S&P CNX Nifty Futures Index, says Michael Syn Hsien-Min, head of derivatives at Singapore Exchange, but he would not reveal any company names. S&am…