ICE to launch Singapore futures and clearing house on Nov 17

Intercontinental Exchange (ICE), which owns the New York Stock Exchange, is set to launch its Singapore futures and clearing house on Nov 17.
Intercontinental Exchange (ICE), which owns the New York Stock Exchange, is set to launch its Singapore futures and clearing house on Nov 17.PHOTO: AFP

SINGAPORE - Intercontinental Exchange (ICE), the leading global network of exchanges and clearing houses, is set to launch its Singapore futures and clearing house on Nov 17.

ICE, which also owns the New York Stock Exchange, announced in a release on Wednesday (Sept 9) that it expects to trade and clear five new contracts in its first tranche, subject to final approval by the Monetary Authority of Singapore (MAS).

They will comprise mini brent futures, mini gasoil futures, kilo gold futures, mini onshore Renminbi futures and mini offshore Renminbi futures.

The contracts - to be offered through ICE Futures Singapore and ICE Clear Singapore - "reflect customer demand and complement ICE's existing portfolio of financial and commodity benchmark contracts," said ICE.

Its regional portfolio of energy, gold and FX contracts offer a range of hedging tools based on the diverse needs of market participants.

"ICE Futures Singapore will offer a range of global and regional products designed to meet the needs of market participants for efficient trading and clearing services in their local jurisdiction," said Mr Lucas Schmeddes, president and chief operating officer of ICE Futures Singapore and ICE Clear Singapore.

ICE has had a presence in Singapore since 2000 serving customers in the global energy markets.

When the company bought the Singapore Mercantile Exchange for US$150 million in February 2014, it said a revamped version of the derivatives market would open by the end of that year. ICE subsequently postponed that until March 17 and then the end of June.

ICE chairman and chief executive Jeffrey Sprecher had said at the second-quarter earnings briefing last month that the company did not want to launch the exchange "until major customers can have access".

"It was in our best interest to slow down and give our customers a chance to catch up to us, (so that) there'll be significant mindshare there around the exchange that will allow us to have a successful launch."

The establishment of ICE Futures Singapore and ICE Clear Singapore is aimed at supporting an expanded customer base and the further development of derivatives markets in Asia, said ICE.

It added that Asia-based trading activity in ICE's benchmark commodity and interest rate products has been rising in recent years as the region assumes a greater role in global derivatives markets.

Upon opening the market, ICE will be the first exchange to operate a clearinghouse in the world's three main geographies: the US, Europe and Asia.