Singapore, Shanghai SEs To Collaborate On Commodity Derivatives

By Editorial 29 October, 2013

The Singapore Exchange (SGX) and the Shanghai Futures Exchange are teaming up to develop the commodity derivatives markets in China and Singapore.

The two exchanges signed a Memorandum of Understanding (MOU) on the cooperation, which will include the development of derivatives for energy, metals, chemicals and commodity indexes, in Shanghai, China on October 19, 2013. The MOU also covers exchange of ideas and information sharing.

"This cooperation with Singapore Exchange will help the internationalization of China's futures market and Shanghai Futures Exchange. It will increase market efficiency, and promote the development of the derivatives markets and the economies of both China and Singapore. We attach great importance to our cooperation with SGX and look forward to mutual benefits in areas such as information exchange, experience sharing and engagement between our executives under the MOU," Liu Nengyuan, president and chief executive of Shanghai Futures Exchange, said.

Magnus Böcker, chief executive of SGX, commented: "We are delighted to partner with Shanghai Futures Exchange in developing new products and services which will enable customers to access opportunities in Asia. At the same time, Shanghai Futures Exchange can leverage SGX's connectivity and infrastructure to reach out to international participants. This partnership marks the start of an exciting journey and further boosts SGX's long-term commitment to China."

Shanghai Futures Exchange, which trades in base metals, precious metals, steel products, oil products and natural rubber, is the biggest futures market in China. SGX is the top exchange for clearing iron ore swaps.

On October 22 Singapore and China agreed on new initiatives to strengthen cooperation on financial sector development and regulation.

The Managing Director of the Monetary Authority of Singapore said: "2013 has been a most productive year for financial cooperation between Singapore and China ... Financial ties between the two countries have deepened considerably and Singapore is well placed to promote greater use of the RMB in international trade and investment in the years to come."

Tags: Investment | Energy | China | Singapore | Stock Exchanges | Memorandum Of Understanding (MOU) | Regulation | Trade | Services | Expats |


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