Exchange paves way for Singapore to be recognised as Asia’s cutting-edge commodities and derivatives trading hub.
Singapore Mercantile Exchange (SMX), promoted by Financial Technologies has started its operations with the ringing of the opening bell by Ong Chong Tee, deputy managing director of the Monetary Authority of Singapore (MAS).
SMX is the first pan-Asian multi-product commodity and currency derivatives exchange that offers a platform for investors wanting to trade in multi-product commodities and currency derivatives.
Jignesh Shah, vice-chairman of SMX and chairman and group chief executive, Financial Technologies Group, said, “We have come a long way in redefining Asia's commodity and derivatives landscape. SMX is well poised to leverage off the demand for commodities in Asia. We have had the support of market participants, policy makers and regulators, who believe that Asia will witness the next wave of growth for global and derivatives trading in the coming years. It is about time Asia showcases its true potential to the rest of the world.”
SMX operates as an exchange regulated and licensed by the MAS. It offers multi-currency and multi-asset clearing, trading, and pricing for contracts with guaranteed settlement and delivery. The contracts are developed to meet both generic and specific hedging requirements over Asian trading hours. The SMX product range, together with the agility and accessibility of its systems, and strategic location in Singapore - a reputable financial centre - will enable the Exchange to be a sophisticated one-stop risk management channel for global liquidity to plug into Asian trade flows.
The four SMX futures contracts launched from the first day of trading on its platform include two leading crude oil benchmarks – Euro-denominated Brent Crude and West Texas Intermediate (WTI), a currency pair – Euro-US Dollar Currency Futures Contract and the first Gold futures contract in Singapore to be settled via physical delivery. Further products will be rolled-out in market segments such as Energy, Agriculture, Metals (precious and base), Indices, and Currencies.