Singapore Exchange adds new Asian currency futures

SINGAPORE - Local bourse Singapore Exchange (SGX) will add new Asian currency futures contracts to its foreign exchange (FX) futures offering.

It said in a statement on March 10 that those on the Taiwanese dollar and yuan crosses will be added in the third quarter of 2015, subject to regulatory approval.

"This is in line with global G20 regulatory reforms in the over-the-counter (OTC) derivatives sector to encourage trading on electronic platforms and exchanges, if appropriate," said SGX.

The SGX Asian FX futures suite grew over the past year, reaching more than US$37 billion in aggregate notional value traded since its launch.

Key contracts such as the Indian rupee and Singapore dollar contracts continually set new volume records, noted SGX.

This significant uptake reflects the growing demand by global investors, to trade Asian FX derivatives on a regulated exchange platform with "greater market transparency and robust price discovery in the Asian time zone".

SGX chief executive Magnus Bocker said: "Global market participants can continue to draw on SGX's unique platform to fulfil their investment needs and effectively manage their Asia-wide exposures across multiple asset classes in the Asian time zone."

SGX recently formed a new partnership with EBS, interdealer broker firm ICAP's market-leading electronic foreign exchange (FX) business, to develop new Asian currency products and services, and strengthen the liquidity in both the FX OTC and futures markets in Asia.