Singapore Exchange (SGX) in conjunction with Australian Securities Exchange (ASX) announced plans to enhance customer’s connectivity to each other ‘s market Wednesday.
Come September, SGX’s co-location data centre in Singapore will host the ASX hub, providing direct connection to the ASX 24 futures market based at the ASX Australian Liquidity Centre in Sydney.
This will allow customers in Singapore to connect more easily to ASX 24, resulting in an expected increase in the volume of futures market activity into Australia.
It will extend ASX’s international hub network, which presently includes Chicago, New York, London, Hong Kong and an existing location in Singapore. About 6 per cent of ASX 24 futures and options volume is generated from its international hub network.
Following which, Australian customers will directly connect via the ASX global network to SGX, the only international venue with futures contracts for Chinese and Indonesian equity indices and the biggest offshore market for Asian equity derivatives.
Mr Muthukrishnan Ramaswami, president of SGX said, “This new SGX-ASX partnership enables both exchanges’ customers to easily leverage the strengths of the Australian and Singapore derivatives markets. As the Asian Gateway, SGX is delighted to enable easier and more cost effective connectivity offerings at a time when investors are increasingly using exchange-traded derivatives to manage risks in the various global marketplaces.”
The partnership with ASX further enhances SGX’s connectivity to major markets and hereby drawing more global participants to the Singapore market and allow SGX customers easy access to international markets.
SGX has been pushing for greater connectivity with global exchanges in the wake of its failure to take-over ASX more than a year ago.
Earlier this month, SGX’s hubs in London and Chicago began operation as part of its connectivity initiative.