The new office is part of a broader ambition to deepen the company’s commitment and exposure into Greater China. SGX has already experienced widespread success with its Chinese Renminbi (RMB) futures, including both the USD/CNH and CNY/USD. Both have been met with insatiable demand.
Despite the expansion, however, SGX recently faced headwinds with its derivatives volumes following the publication of its latest metrics last month. Total derivatives volume (14.7 million contracts) were reported to be down 15% month-on-month but up 67% year-on-year.
According to Chew Sutat, executive vice president of SGX, in a recent statement on the expansion, “With its strategic location to China and Taiwan, Hong Kong is an integral part of SGX’s Greater China strategy. We have been working closely with our local partners in contributing to the development of Hong Kong’s derivatives market.”
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“SGX has been the choice of partner for global investors in Asia for growth, price discovery and risk management solutions more than 30 years. We will continue to enhance our single-point access into key Asian markets and global commodities for our derivative clients,” added Mr. Sutat.
According to Jiang Lin Qiang, general manager of China Xin Yongan Futures Co. Ltd., in a statement on the opening, “We welcome SGX-DT’s on-the-ground presence. SGX-DT’s innovative commodities and FX products have increased efficiency of risk management and hedging and provided our customers with a balanced portfolio of opportunities in Asia.”
“As we grow our presence in Greater China, our international network and connectivity will provide additional Asia-based offerings and bring the financial markets and participants of Hong Kong and Singapore more closely together,” Mr. Chew reiterated.