Launch of SGX-SICOM clearing arrangement allows SGX members to trade and clear SICOM contracts

Launch of SGX-SICOM clearing arrangement allows SGX members to trade and clear SICOM contracts

16/09/09

Singapore Exchange Limited (SGX) and Singapore Commodity Exchange Limited (SICOM), an SGX wholly-owned subsidiary, are pleased to announce the launch of a SGX-SICOM clearing arrangement on 1 October 2009.

The clearing arrangement will provide SGX trading members direct trading access into SICOM’s commodity derivatives market by becoming an Affiliated Trader of SICOM. All SGX trading members are eligible to become an Affiliated Trader of SICOM and will not be required to meet further financial obligations under this arrangement.

SGX trading members and their customers will experience greater clearing convenience by using their current clearing and risk management arrangements with SGX clearing house to clear their trades executed on SICOM.

For a start, this connectivity will enable SGX members to trade and clear the existing rubber contracts on SICOM, namely: Ribbed Smoked Sheet 3 (RSS3) and Technically Specified Rubber 20 (TSR20). Market participants can expect to have access to a broader suite of commodity derivatives products as SICOM plans to launch new contracts soon.

Mr Jeremy Ang, CEO of SICOM said, “We are pleased that SGX members can now directly access a wider choice of commodity derivatives contracts. With this arrangement, it enlarges the trading pool of participants, thereby widening distribution of our products. This is an integral part of our initiatives which will benefit our market participants.”