SGX looks at introducing FFA clearing in Asian timezone

SGX looks at introducing FFA clearing in Asian timezone

Singapore: The Singapore Exchange (SGX) is taking heed of major customers to try and introduce FFA clearing in Asian trading hours, Splash understands. The likes of Noble and Cargill have been urging the SGX to up its FFA game for years and the SGX is willing to respond and give London’s LCH.Clearnet a run for its money, sources connected to the SGX have told Splash.

“In developing the FFA market, SGX recognises the importance of a robust Asian-centric marketplace which is well supported with an internationally accepted regulatory framework,” a spokesperson for SGX told Splash.

SGX is attempting to increase the number of Asian participants with hedging needs or who are seeking exposure to freight prices. It is also trying to reach out to and share with freight participants how to manage their price risks, the spokesperson said.

“Though the majority of the trading may take place in Europe, the centre of gravity has been tilting towards Asia where an increasing number of key European participants have enhanced their trading and broking infrastructure to participate in the Asian timezone.  Such growth momentum will continue as the number and type of shipping players, such as physical participants, brokers and banks, increase over time and supported by the underlying activity in the dry bulk market in this region,” the source said.

The number of dry bulk freight contracts traded via the SGX jumped 700% year-on-year to 14,154 contracts in April.


Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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