Singapore Exchange is poised to bring on new Asian currency futures this year as the exchange plans to expand its Asian FX suite to include renminbi, yen and baht. The new offerings, if approved, are slated to go live in the third quarter, SGX announced Tuesday during the 39th Annual International Futures Industry Conference. The latest announced expansion comes only four months after SGX launched its FX futures contracts business, which has seen more than $1 billion in notional value traded since its inception.
Adding these currencies falls in line with SGX’s stated commitment to transparency in the marketplace. Bringing major currency FX derivatives onto the SGX platform will also enable better risk management for traders in the Asian time zone and “facilitate greater use of RMB in international trade and investment,” said Magnus Bocker, the CEO of SGX.
The move also increases the importance of Singapore as a derivatives hub and supports SGX’s effort to and grow its relationship with China . “Singapore is becoming the London of Asia,” Bocker explained. “Singapore is the natural place to be if you want to trade China.” Bocker added that he sees the exchange landscape shifting to where Asian exchanges work together to produce links that boost intra-continental trading rather than seek tie-ups across continents. To facilitate such a shift, Bocker said SGX is ramping up staff to grow its footprint in numerous Asian markets.
Currently, Singapore represents the third-largest FX market in the world. In addition to its growing FX futures offerings, SGX clears OTC, non-deliverable FX forwards in seven Asian currencies and interest rate swaps.
Contributing writer: Sean McMahon in Boca Raton, Fla.