Bringing you live news and features since 2013
Bringing you news, views and analysis since 2013
Singapore Stock Exchange

28204

SGX rolls out new FX solution with innovative flexible features

RELATED TOPICS​

Singapore Exchange (SGX), which operates Asia’s largest, most diverse and fastest growing FX exchange, is to launch SGX FlexC FX Futures that aim to futurise OTC product offerings. 

With a planned launch date of 27 August 2018, SGX FlexC FX Futures – developed in consultation with market participants – enable bilateral trades that are privately negotiated with tailored expiration dates to be registered and cleared like a standard SGX FX futures contract. This innovative feature will be available for INR/USD, KRW/USD, TWD/USD, USD/CNH and USD/SGD contracts.
 
“Michael Syn, Head of Derivatives, SGX, says: “Access to counterparty credit, especially for tenors longer than spot, is increasingly scarce and expensive in the OTC FX markets. To encourage broader adoption of price risk management in Asian FX, SGX is proud to announce the innovative FlexC FX Futures. We have worked with market participants to bring the efficiencies of futures market infrastructure into Asian FX. FlexC FX offers futurised client-clearing, bringing the surety of SGX’s market-leading central counterparty clearing house (CCP) to existing bilateral credit relationships, and expanding opportunities for improved Asian FX price discovery and risk management workflow.”
 
In today’s complex trading environment, SGX FlexC FX Futures aim to help streamline the regulatory obligations faced by market participants. With FX markets moving towards central clearing, this new feature will offer an effective way of enhancing operational efficiencies, lowering costs and counterparty credit risk, and keeping bilateral trading relationships at the same time.
 
Jean-Philippe Male, CEO, BidFX, says:“BidFX is always very happy to work on innovative solutions that address today’s complex trading and post-trade environment. We are delighted to support this initiative with SGX which will help enhance our clients’ operational capabilities as well as provide alternatives to a pure OTC trading workflow.”
 
Ayal Jedeikin, Co-Founder and CMO, TradAir, adds: “We are excited to participate in this new SGX initiative. TradAir has been a pioneer of trading software for regional banks and Inter-Dealer Brokers for emerging currencies since its inception. We see great potential in utilising SGX FlexC FX Futures solution to remove existing frictions in the OTC FX markets for currency pairs associated with INR, KRW, TWD, CNH and SGD so that market participants can continue to enjoy an unparalleled level of growth as experienced in the past few years.”
 
Wessel van der Scheer, Managing Director, TFS Derivatives HK Ltd, says: “TFS Derivatives HK Ltd will act as an independent intermediary, operating our platform TradMatch, with institutional block-size participants providing liquidity on the SGX FlexC FX Futures. We will support a Central Limit Order Book on the outrights and the calendar spreads, while also running continuous and anonymous mid-market matching opportunities. Tradition Asia has a long-standing relationship with SGX and we hope to develop this further with the SGX FlexC FX Futures.”
 
 
 

Latest News

According to the latest ESG data from PwC Luxembourg finds that investment flows towards EU..
Solactive and private equity data provider CEPRES have established a new partnership for to introduce..
New research published today by the CFA Institute Research and Policy Centre analyses the many..

Related Articles

Pension funds
UK defined benefit (DB) pension plan sponsors could have access to GBP 1.2 trillion in surplus assets over the next decade, industry research reveals...
UK defined benefit (DB) pension plan sponsors could have access to GBP 1.2 trillion in surplus assets over the next..
Tim Crawmer, Payden & Rygel
Tim Crawmer and Frasat Shah of Payden & Rygel write that higher yields are attracting more demand from investors. Also, given that equities had a strong year last year, big funds have taken some chips off the table in equities and put them into fixed income...
Tim Crawmer and Frasat Shah of Payden & Rygel write that higher yields are attracting more demand from investors. Also,..
Lady justice
Top marks for the Pensions Regulator (TPR) whose efforts to improve resilience in the UK pension funds’ liability-driven investment (LDI) strategies received glowing commendations from the Bank of England in its March report...
Top marks for the Pensions Regulator (TPR) whose efforts to improve resilience in the UK pension funds’ liability-driven investment (LDI)..
Pension funds
Four potential operators of pensions dashboards (Just Group, Legal & General, Moneyhub and Standard Life, part of Phoenix Group) are coming together to instigate a new industry coalition...
Four potential operators of pensions dashboards (Just Group, Legal & General, Moneyhub and Standard Life, part of Phoenix Group) are..
Subscribe to the Institutional Asset Manager newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by