SGX plans roll-out of new futures contracts in Bitcoin, Brazilian real
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SGX intends to launch the contracts in the second half of 2025 and will strictly offer them to institutional clients and professional investors only.
ST PHOTO: LIM YAOHUI
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SINGAPORE - The Singapore Exchange (SGX) plans to launch new derivatives contracts in Bitcoin and the Brazilian real, further expanding its lucrative derivatives business.
On March 10, SGX told the media that it will soon launch Bitcoin perpetual futures on its platform in efforts to capture strong international demand for crypto exposure from institutional investors.
Perpetual futures, which have no expiry dates, are especially popular in crypto trading, as they allow traders to take leveraged positions in the underlying cryptocurrency without having to own it.
This means traders can take a larger position in the underlying asset with a small amount of capital, and amplify profits if asset prices move in their favour. Should prices move against them, traders could lose their entire margin.
SGX intends to launch these contracts in the second half of 2025 and will offer them to institutional clients and professional investors only. Retail customers will not be permitted to trade the contracts.
An SGX spokesperson said: “In a space where confidence and credibility make all the difference, our innovative offering on a trusted, regulated platform will significantly expand institutional market access.
“While subject to due regulatory process, initial feedback from participants in the market on our product has been positive.”
The planned products are subject to due regulatory process with the Monetary Authority of Singapore.
The moves come on the back of US President Donald Trump’s pro-crypto agenda
Cryptocurrency prices have been especially volatile since Mr Trump took office. Escalating tariff uncertainties sent Bitcoin to its lowest level in four months on March 11, at around US$77,000.
Also on March 10, SGX announced that it is teaming up with Brazilian exchange operator B3 to launch futures contracts for Brazil’s local currency, the real, later in 2025.
Unlike perpetual futures contracts, a futures contract is a financial agreement between two parties to buy or sell an asset at a predetermined price on a specific future date.
Foreign exchange futures help traders hedge against currency fluctuations by locking in an exchange rate for a future date.
The move aims to address demand from global investors in Asia looking to manage their currency risks in the Brazilian real around the clock. It also marks SGX’s first foray into emerging market currency futures outside Asia.
Brazil is a leading exporter of commodities such as beef, iron ore and soya beans.
Its government said on March 6 that it would remove import taxes on essential products, including sugar, coffee, corn and beef, to help reduce food prices.
At SGX’s recent results briefing in February, its chief executive Loh Boon Chye said the company has seen rising global demand for its derivatives, which span equities, commodities and foreign exchange, as well as higher trading across its products.
