The SGX has been relatively quiet in terms of new offerings in 2014, having largely been devoid of moves outside of its partnership with Fidessa back in February. However, the fortification of Asian FX futures contracts offers investors a large degree of exposure to these instruments and regions, including China, Japan and Thailand – these futures contracts are slated to become available from October 20, 2014.
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In addition, the SGX has announced that the Bank of China (BOC) will be the inaugural market maker for RMB futures on SGX’s platform, effectively making the BOC the exchange’s first Chinese settlement bank. This is but the second installment of a bourgeoning partnership that began in September 2013 between the SGX and BOC.
According to Magnus Böcker, CEO of SGX, in a recent statement on the new contracts, “Today marks another significant milestone for SGX. FX, as an asset class, is highly complementary to SGX’s equities and commodities franchise. The enhanced SGX Asian FX suite widens the window for even more investors to tap on the growth opportunities across major Asian markets and manage their currency exposures at the same time. The SGX RMB futures complements the range of RMB-denominated investment products in Singapore, and will further boost the growth and deployment of the RMB deposits pool in Singapore.”