Singapore Exchange Limited : Singapore Exchange to Launch FX Futures; Plans Electricity Futures Market Singapore Exchange Ltd. (S68.SG) said Monday it will launch foreign exchange futures contracts from next month and is considering starting an electricity futures market by the end of 2014. The Singapore bourse operator will launch contracts for deliverable and non-deliverable Asian currencies from Nov. 11, starting initially with six currency pairs that include the Australian dollar versus the U.S. dollar and Japanese yen and U.S. dollar-Singapore dollar. More currency pairs will be added later, Singapore Exchange said in a statement. The introduction of Asian foreign exchange futures is in line with global regulatory reforms where all standardised over-the-counter derivative contracts should be traded on exchanges or electronic trading platforms, it said. The introduction of Asian foreign exchange futures will enhance transparency and is consistent with global regulatory reforms in the trading of derivative contracts, the Monetary Authority of Singapore said in an emailed statement. The move comes amid a global probe into alleged manipulation of foreign exchange benchmark rates being conducted by regulators in several nations, including officials in the U.K, Hong Kong and Switzerland. Singapores central bank said last week that it will help investigations by authorities in other nations and is in touch with foreign regulators on the issue. Separately, Singapore Exchange said it plans to launch an electricity futures market that will potentially be Asias first. Such a market would serve as a strategic tool for market participants to manage price risks arising from business operations, and to enjoy the benefits of price discovery and asset optimisation in the electricity market, Singapore Exchange said in a statement. A number of power companies have expressed interest in becoming market makers for the electricity futures market, it said. They include YTL PowerSeraya, Senoko Energy, Tuas Power Generation, Sembcorp Cogen, Keppel Merlimau Cogen and Tuaspring. The operator said it is in discussions with these companies, as well as Singapores Energy Market Authority and Energy Market Co., to design derivatives products for the electricity futures market.
Posted on: Mon, 28 Oct 2013 10:33:32 +0000