Asia Pacific Exchange (Apex) has received approval from the Monetary Authority of Singapore (MAS) to start a third derivatives exchange as well as a clearing house in the city state.
Apex, which changed its name from Asia Investment on Aug 17 last year, plans to launch trading in the second quarter, with US dollar-denominated physically delivered palm olein futures as its first contract.
It intends to also offer futures and options contracts covering both commodity and financial derivatives products, including agriculture, energy, petrochemical, metal, interest rate and stock indices.
"Apex's vision is to establish itself as an exchange that will be the Asian centre for price benchmarks to be referenced by global market participants," said founder and chief executive Eugene Zhu Yuchen.
He is a former CEO of the Dalian Commodity Exchange and president of the China Financial Futures Exchange. He is also an Apex major shareholder.
Other Apex shareholders include Chaos Investment, a hedge fund and futures brokerage with offices in Shanghai and Hong Kong.
Ms Lim Hwee Hua, formerly a minister in the Prime Minister's Office and second minister for finance and transport, chairs Apex's board.
Apex will be Singapore's third derivatives exchange after the Singapore Exchange and the Intercontinental Exchange.