SGX builds up commodities offering

London, May 2013

Singapore Exchange(SGX) is building up its bulk commodity product offerings with 9 more derivative contracts over the next 2 months, subject to regulatory approval.

The exchange aims to introduce options-on-futures for Iron Ore and Freight by June 2014 and intends to enhance its flagship Iron Ore and Steel complex with Coking Coal derivatives based on key export and import price indices.

It will also bolster its existing suite of Asian thermal coal derivatives with API 4 and API 5 to capture seaborne coal prices exported from South Africa and Australia in July this year.

The new contracts are designed to reflect major physical commodity flows so as to cater to the needs of producers as well as consumers in the Asian bulk commodities market.

Earlier this week SGX said its commodities trading and clearing activities grew in April from a year earlier.

Volume of cleared iron ore swaps rose 68% to 54,845 contracts while volume of cleared iron ore options tripled to 12,690 contracts. Volume of Asiaclear iron ore futures was 140,035 contracts, 171 times the volume a year earlier.

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