Singapore Mercantile Exchange goes live

It is the first pan-Asian commodity and currency bourse.

The Singapore Mercantile Exchange (SMX), the first pan-Asian multi-product commodity and currency derivatives exchange, started operations in Singapore on Tuesday. It is promoted by Financial Technologies.

The exchange started with four contracts — two leading crude oil benchmarks, euro-denominated Brent Crude and West Texas Intermediate, a euro-US dollar currency futures contract and the first gold futures contract — to be settled via physical delivery.

The exchange also plans to roll out products in market segments such as energy, agriculture, metals (precious and base), indices and currencies.

While ringing the opening bell, Ong Chong Tee, deputy managing director of the Monetary Authority of Singapore (MAS), said: “The launch of SMX strengthens Singapore’s position as the region’s financial hub and brings about a significant milestone in the Singapore commodity derivatives market. Its development will add to the vibrancy of Singapore’s financial centre and cater to the growing needs of market participants in commodities and derivatives trading.”

Speaking on the occasion, Indian High Commissioner T C A Raghavan said: “Financial Technologies Group (FTIL) represents the new generation of corporate entities that have earned global recognition and respect for technology expertise and domain knowledge in setting up world-class financial market institutions. The setting up of SMX in Singapore by FTIL demonstrates the increasing cooperation and trade ties between India and Singapore, leveraging the Comprehensive Economic Cooperation Agreement.”

SMX operates as an exchange regulated and licensed by MAS. It offers multi-currency and multi-asset clearing, trading and pricing for contracts, with guaranteed settlement and delivery.

The SMX product range and location in Singapore will enable it to be a sophisticated one-stop risk management channel for global liquidity to plug into Asian trade flows.