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| Singapore Mercantile Exchange begins trading |
| Press Trust of India / Singapore Aug 31, 2010, 10:10 IST |
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In the first major international exchange business initiative by an Indian entity, a new commodity and currency bourse, Singapore Mercantile Exchange (SMX) today commenced trading here with derivatives contracts like gold, crude oil and Euro-US dollar.
The opening bell for the new bourse, part of Mumbai-based Financial Technologies group, founded by engineer-turned- enterpreneur Jignesh Shah and which runs exchanges like MCX and MCX-SX in India, was rung by Monetary Authority of Singapore (MAS) Deputy MD Ong Chang Tee.
With the sounding of a gong, a practice followed in many bourses including in India for opening trade in an exchange, a symbolic trade was executed and SMX was declared open for business.
Announcing the launch of SMX, Shah, Chairman of Financial Technologies, said that Singapore deserved a world-class commodity exchange and it was proud moment for him to facilitate one as an Indian.
Shah said that last year total commodity trading business across the world was estimated at 6.3 billion contracts and out of it as much as 6.2 billion contracts were from Asia, despite most of the people from Asia conducting these trades on bourses in the US and Europe.
He declared the new bourse was for Asia and from Asia, while noting that Singapore was the best place to set up this exchange because of various factors like favourable regulatory framework and its status as a major global financial centre.
MAS's Tee said that Singapore has had an early history of commodity trading and many decades ago when Singapore began spice trading, it was well-assisted by people from India.
Singapore is already the largest place for dealings in foreign currency after Tokyo and more than 280 major global trading companies are present here.
To start with, SMX will offer trading in gold, euro/US dollar currency futures and WTI crude oil futures. Financial Technologies group has about a dozen exchange businesses in India and abroad.
SMX will be the first pan-Asian multi-product commodity and currency derivatives exchange.
Others present at the launch included High Commissioner of India here T C A Raghavan.
Tee said that SMX should add to the strength of Singapore's financial market and cater to the growing needs of market participants in commodity and currency trading business.
The exchange today launched four futures contracts - euro-denominated brent crude, west texas intermediate (wti) crude' currency pair of euro and US dollar, and first gold futures contract for Singapore to be settled through physical delivery.
SMX has appointed Standard Chartered Bank, RBS and ICICI bank as settlement banks.
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