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Friday, September 19, 2014

SGX adds new forex futures contracts


Singapore Exchange (SGX) said it is adding new Asian foreign exchange (FX) futures contracts on Chinese RMB (USD/CNH, CNY/USD), Japanese Yen (USD/JPY) and Thai Baht (THB/USD).

The new Asian FX contracts will be available for trading from 20 October 2014.

The expanded suite of SGX FX futures offerings is in line with G20 recommendation to encourage trading of derivatives on exchanges or electronic platforms. It will provide an avenue for investors to efficiently manage their Asian currency risks via a transparent, margin-efficient and well-regulated marketplace.

SGX also said that the Bank of China (BOC) will be the pioneer market-maker for its RMB futures and welcomes BOC as SGX’s first Chinese settlement bank for its derivatives market. This development underpins the partnership agreement signed between SGX and BOC in September last year.

Singapore is today the world’s third largest FX market and a leading price discovery centre for major Asian currencies. SGX’s suite of Asian FX futures provides market participants with a regulated exchange platform for price discovery of key Asian currencies, promoting greater transparency and better serving investment and risk management needs in the Asian time zone.

In November 2013, SGX introduced its first suite of six FX Futures pairs to allow investors to manage their FX risk on the same venue as their equity index exposure. These six pairs are the AUD/USD, AUD/JPY, USD/SGD, INR/USD, KRW/USD and KRW/JPY, which have registered more than US$7 billion in aggregate notional value traded since launch.

SGX closed 0.14% lower at $7.21.

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