2013-03-12 20:45:53 -
Singapore Exchange (SGX) is adding Asian foreign exchange (FX) futures to its derivatives market in the third quarter of 2013, subject to regulatory approval.
The proposed FX futures suite will include deliverable and non-deliverable Asian currencies cleared in currencies such as the US dollar, Japanese yen and Singapore dollar. SGX will initially offer four currency pairs: the Australian dollar/US dollar, Australian dollar/Japanese yen, Indian rupee/US dollar and US dollar/Singapore dollar.
The introduction of FX futures for trading and clearing is SGX's response to strong client demand for currency management tools to complement its suite of highly liquid Asian equity derivatives. SGX is the world's largest offshore market for Asian equity derivatives with a record US$5 trillion notional of contracts traded in
2012. SGX also clears non-deliverable FX forwards in seven Asian currencies.
Anchored in AAA-rated Singapore, the Asia's leading hub for foreign exchange, SGX's award-winning derivatives market enjoyed over 100% growth in open interest in 2012 as international customers continued to leverage SGS's position as the leading Asian clearing counterparty meeting the highest international standards.
"The Asian forward currency markets continue to grow strongly alongside trade and capital flows. Price discovery naturally happens in our time zone where the relevant policy makers, central banks and capital market stakeholders are located. As Asian capital markets increase their share of global investments, investors can seek to manage Asian currency risk as specific sources of outperformance," said Mr Magnus Bocker, CEO of SGX.
"SGX"s proposed suite of Asian FX futures offers customers a transparent, robust and margin-efficient platform for Asian currency risk management, and further cements Singapores lead as the price discovery centre for Asian foreign exchange," he added.
About Singapore Exchange (SGX)
Singapore Exchange (SGX) is the Asian Gateway, connecting investors in search of Asian growth to corporate issuers in search of global capital. SGX represents the premier access point for managing Asian capital and investment exposure, and is Asia's most internationalised exchange with more than 40% of companies listed on SGX originating outside of Singapore. SGX offers its clients the world's biggest offshore market for Asian equity futures market, centred on Asia's three largest economies - China, India and Japan.
In addition to offering a fully integrated value chain from trading and clearing, to settlement and depository services, SGX is also Asia's pioneering central clearing house. Headquartered in Asia's most globalised city, and centred within the AAA strength and stability of Singapore's island nation, SGX is a peerless Asian counterparty for the clearing of financial and commodity products. For more information, please visit www.sgx.com .
Source: Singapore Exchange (SGX)
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