Tuesday, November 29, 2011

SGX Introduces Clearing of New OTC Coal and Naphtha Swaps

Singapore Exchange’s (SGX) AsiaClear service will clear more varieties of over-the-counter (OTC) coal and naphtha swaps from next month.

According to SGX, clearing of OTC CFR South China Coal Swaps and CFR Japan Naphtha Swaps is available from 5 December 2011, while Balance-of-Month CFR Japan Naphtha Swaps and Balance-of-Month FOB Korea Benzene Swaps clearing will be offered from 1 February 2012.

Julie Heng, Head of Commodities at SGX, said: “We are extending our OTC product suite in response to market demands, offering greater breadth of trading tools to our customers. These products offer traders and market participants additional risk management tools which will help to support the growth of the coal and petrochemical markets in the region.”

China’s energy-hungry economy, which relies on coal for some 80 per cent of its power generation needs, has seen its net import of thermal coal surge to over 100 million metric tonnes a year, according to the Australian Bureau of Agricultural and Resource Economics and Sciences. This makes China the world’s second-largest thermal coal importer behind Japan and ahead of South Korea.

Naphtha is the feedstock for many petrochemical processes in the manufacture of products including plastics, fibres and lubricants. Three of the largest petrochemical producers in Asia ‒ Japan, South Korea, and Taiwan ‒ import approximately 80 million metric tonnes of naphtha a year for the industry.

Other OTC products that SGX clears on AsiaClear include Sub Bituminous Coal FOB Indonesia Swaps, FOB Singapore Naphtha Swaps and FOB Korea Benzene Swaps.

Thursday, November 17, 2011

ASEAN Exchanges Roll Out ASEAN Trading Link

ASEAN Exchanges, a collaboration of seven Southeast Asian bourses, on Thursday announced the roll out of the ASEAN Trading Link, an initiative which will see the participation of member exchanges taking place progressively.

The first stage will see the connectivity of Singapore Exchange and Bursa Malaysia in June 2012, to be followed by the Stock Exchange of Thailand in August 2012 after its new trading engine goes live.

The participation dates of the other ASEAN Exchanges members from the Philippines, two from Vietnam, and Indonesia will be announced at a later date.

“The three bourses that will participate in the first stage of the ASEAN Trading Link represent approximately 70 per cent of the market capitalisation of the seven-member collaboration, thus offering substantial investment opportunities for investors.”

The seven ASEAN Exchanges have a combined market capitalisation of approximately

US$2.0 trillion, with more than 3,600 companies listed on their exchanges.

Some of these companies are the largest and most dynamic companies in the world, including those in the finance and banking, energy, telecommunications, commodities, automotive manufacturing and other industrial sectors.

Thursday, November 03, 2011

SGX Derivatives and OTC Clearing Volumes Increase in October

Singapore Exchange (SGX) Wednesday announced that derivatives and commodities activity rose while securities trading fell in October from a year earlier.

Turnover for securities fell 38 per cent year-on-year to S$28 billion as global uncertainties continued to curb investor appetite. The securities daily average value was S$1.4 billion, down 35 per cent from a year earlier.

ETF turnover fell 42 per cent to S$557 million but structured warrants trading rose 61 per cent to S$812 million.

Total derivatives volume increased 11 per cent year-on-year to 5.9 million contracts, while the derivatives daily average volume was 304,088 contracts, up 17 per cent.

Nifty futures volume was 19 per cent higher from a year earlier at 1.2 million contracts. MSCI Singapore futures volume rose 30 per cent to 412,671 contracts. China A50 futures trading more than doubled year-on-year to 305,667 contracts.

Commodity futures volume increased 2 per cent year-on-year to 21,906 contracts.

Volume of over-the-counter (OTC) commodity contracts cleared rose 45 per cent from a year earlier to 26,037 contracts.

Meanwhile, volume of Iron Ore Swaps cleared totalled 15,380 contracts, five times that of a year earlier.

Clearing of OTC Interest Rate Swaps continued to grow with a notional S$11.4 billion cleared in October, bringing the cumulative amount cleared since launch to S$180 billion notional.

Tuesday, November 01, 2011

SGX to Attract Listings from India with New Appointment

Singapore Exchange (SGX) announced that it has appointed Neena Prasad as Senior Vice President and Head of Listings (India) with effect from Tuesday.

SGX said she will lead the exchange’s efforts in attracting listings from India to its international capital-raising platform.

Prasad reports to Lawrence Wong, Executive Vice President and Head of Listings of SGX.

“We continue to see strong interest from Indian businesses seeking to tap the international capital market via our Asian Gateway and our product (offerings) such as REITs and Business Trusts. With Neena’s vast experience in the Indian market, she can ably promote SGX as the listing venue of choice in South Asia to businesses seeking international exposure,” Wong said in a statement.

Before joining SGX, Prasad was with Morgan Stanley New Delhi, and has extensive experience in India’s private and investment banking industry.