Singapore Exchange plans to expand its suite of foreign exchange futures offerings in the third quarter with the addition of contracts for Renminbi crosses and the Taiwanese dollar. The additions, which were announced on the sidelines of the 40th Annual FIA International Futures Conference, are subject to regulatory approval and fall in line with the latest G20 changes affecting over-the-counter derivatives that call for a movement toward electronic exchanges.
The SGX Asian FX futures suite has hit $37 billion in aggregate notional value over its lifetime as contracts for the Indian rupee and Singapore dollar routinely break volume records. The exponential growth rate for Asian FX futures has mirrored strong, growing demand by investors worldwide for FX derivatives trades on a regulated platform that offers transparency and real-time pricing to coincide with Asian time zones.
“Global market participants can continue to draw on SGX’s unique platform to fulfill their investment needs and effectively manage their Asia-wide exposures across multiple asset classes in the Asian time zone,” said SGX CEO Magnus Böcker, who has announced he is leaving the exchange in June of this year. “We remain focused on product innovations and strategic partnerships to push new grounds in the Asian FX markets.”
Böcker also noted SGX’s rapid expansion in various regions, adding that the United States is the next logical place where SGX may look increase its presence.
In addition to the suite expansion, SGX is working on the development of new Asian currency products and services with partner EBS, ICAP’s electronic FX business. The goal of the partnership is to offer products and services that attract liquidity to futures and OTC FX markets in Asia.
SGX is the first counterparty in Asian to provide OTC clearance for non-deliverable FX forwards in seven Asian currencies and interest rate swaps.
Contributing writer: John Davis