SGX boosts yuan offering with new FX contracts

The Singapore Exchange (SGX) is adding new Asian foreign exchange futures contracts on the Chinese yuan, Japanese yen and Thai baht, to further augment its successful suite of forex offerings. -- PHOTO: ST FILE
The Singapore Exchange (SGX) is adding new Asian foreign exchange futures contracts on the Chinese yuan, Japanese yen and Thai baht, to further augment its successful suite of forex offerings. -- PHOTO: ST FILE

SINGAPORE - THE Singapore Exchange (SGX) is adding new Asian foreign exchange futures contracts on the Chinese yuan, Japanese yen and Thai baht, to further augment its successful suite of forex offerings.

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

The expanded suite is in line with G20 recommendation to encourage trading of derivatives on exchanges or electronic platforms.

This will provide an avenue for investors to efficiently manage their Asian currency risks via a transparent, margin-efficient and well-regulated marketplace.

The Bank of China (BOC) will be the pioneer market-maker for its yuan futures.

This development underpins the partnership agreement signed between SGX and BOC in September last year, said SGX in a statement.

"FX, as an asset class, is highly complementary to SGX's equities and commodities franchise. The enhanced SGX Asian FX suite widens the window for even more investors to tap on the growth opportunities across major Asian markets and manage their currency exposures at the same time," said SGX chief executive Magnus Böcker.