SINGAPORE - Singapore Exchange (SGX) has opened a new office in Chicago as it makes its foray into the United States.
Having a presence in the US will enable SGX to "better serve a growing client base in this region and meet the rising international investor appetite to access and risk manage Asian exposure", the bourse operator said in a statement.
SGX operates a pan-Asian multi-asset marketplace that provides international investors with exposure to 95 per cent of Asia's gross domestic product through the benchmark equity indices of China, India, Japan and Asean.
The new SGX America, launched on Tuesday, will allow investors in North America to better access risk management solutions and price discovery tools that also span foreign exchange and commodities.
SGX chief executive Loh Boon Chye noted that the move marks an important milestone in SGX's international expansion strategy and reinforces its status as Asia's most connected exchange.
"SGX's knowledge of the Asian markets, and the diversity of our Asia-linked futures and options will resonate with investors in North America who are increasingly looking East for growth opportunities across asset classes," said Mr Loh.
"A physical presence in the US will also better enable us to develop connectivity with the world's largest equities and fixed income market."
SGX head of derivatives Michael Syn added: "The opening of SGX America complements the global nature of SGX's products and platforms and is a logical step following the extension of our now round-the-clock trading and clearing hours.
"Given the size and depth of the market, spanning financial institutions, funds, trading firms and Futures Commission Merchants, the US is an important market for us, both for our financial and commodity derivative products. Chicago is home to a vibrant trading community with a long history in the global futures and options market, making it a natural first base for us."
SGX's high-performance derivatives trading platform, SGX Titan, was launched in November last year, extending the trading hours of SGX's derivatives market to one of the longest in Asia, continuing through European hours and covering the US market close.
With the SGX Titan, average monthly T+1 volumes for listed financial derivatives rose by 13 per cent in the half year after the launch, compared with the six months prior to the launch, with participation increasing in both Europe and the US.