Singapore Mercantile Exchange (SMX) has received in-principle regulatory clearance from the Monetary Authority of Singapore (MAS), the central bank of Singapore and regulator for its financial markets, to operate Pan-Asian multi-product commodity derivatives exchange.
SMX will offer cross-border trading to market participants in Asia and across the world. Using an electronic platform developed by Financial Technologies India Limited (Financial Technologies), participants will be able to trade products ranging from precious metals, base metals, energy, agriculture, currency pairs, and commodity indices to other exotic products.
Ang Swee Tian, chairman of SMX, said: “This is a significant milestone for us, as we progress towards the launch of Asia’s first multi-product commodity exchange. I believe that we have in place all the elements for a thriving commodity exchange based in Singapore.”
Jignesh Shah, vice chairman of SMX and, chairman and group CEO of Financial Technologies, said: “It is the foresight and vision of the Singapore Government which has enabled Singapore to be among the top three international financial centres in the world today. We are thankful to the MAS for giving SMX the opportunity to enhance the existing financial ecosystem of Singapore.”
Laurence O’Connell, MD of Asia Pacific operations at MF Global, said: “As a world leader in execution and clearing services for exchange-traded as well as over-the-counter derivative products, we believe the SMX initiative will serve as an important market for commodities trading in the region and recognize Financial Technologies as a strong strategic partner in the industry.”
Thomas McMahon, CEO of SMX, said: “It is indeed an eventful and historic time for Asia and Singapore. Our customers want greater price transparency and to better manage their risk in the Asian trading hours. This is the main focus of SMX. In the meantime, SMX continues to work on satisfying MAS on an agreed set of conditions, so that it may commence operations in the new year.”
