Singapore Exchange (SGX) is launching its first suite of foreign exchange futures on November 11, prompted by the potential regulatory shift for OTC instruments to be moved onto an exchange-traded environment.
Overrunning from its original intention to launch in Q3, the contracts will cover six deliverable and non-deliverable Asian currency-pairs: AUD/USD, AUD/JPY, USD/SGD, INR/USD, KRW/USD and KRW/JPY with plans for additional contracts in the pipeline.
The move coincides with ongoing delays to FX futures launches in Europe by both Eurex and CME, for differing reasons.
It may also be shored up by the recent BIS triennial survey findings, in which Singapore is now the world’s third leading FX centre after London and New York.
SGX was also the first central counterparty in Asia to clear over-the-counter non-deliverable FX forwards in seven Asian currencies and interest rate swaps.
Magnus Böcker, SGX CEO, says the move will offer global investors a transparent, margin-efficient and well-regulated marketplace to seamlessly manage their Asian currency risks. “We will be adding more currency pairs to our Asian FX suite over the next 12 to 18 months,” he says, adding “This comprehensive range of Asian FX futures will contribute towards the continued growth of Singapore's FX market, which is already the world's third biggest FX centre.”