Singapore's Image As Regional Financial Hub Gets An Uplift With The Launch Of New Exchange For Commodities Trading

 By: Manish Gosh
Singapore's financial market landscape will have a new player by the end of August - the Singapore Mercantile Exchange (SMX), the first pan-Asian multi-product exchange. The Monetary Authority of Singapore (MAS) granted 'Approved Exchange' (AE) status to SMX on 12 August 2010, the final approval needed to operate as a regulated and licensed exchange.

SMX offers a comprehensive platform for trading a diversified basket of commodities including futures and options contracts on precious metals, base metals, agriculture commodities, currencies and commodity indices. Four derivatives products will initially be on offer at the SMX namely, West Texas Intermediate and Brent crude oil futures, gold futures and euro-US dollar futures. The SMX's target is to pick up between 3 and 5 percent of the 7 billion derivatives contracts traded in Asian markets. SMX will be offering Singapore's first gold futures contract with physical delivery at vaults in Singapore.

SMX's key agenda is to create a viable Asian price discovery and benchmarking system, Asia which has evolved to become the leading producer and consumer of commodities still concurs with the western markets which are the price setters. Being at proximity to the productions centers and the consumption markets it will facilitate transparent price discovery based on demand supply fundamentals. The state-of-the art electronic trading platform allows for multiple connectivity option and enables vibrant commodity trading within the Asian markets during Asian time zone.

Singapore is already the third largest oil trading center after New York and London, the top bunker port in the world, the fifth largest foreign exchange trading center and the eighth largest center for over-the-counter derivatives, and with the SMX coming live on August 31st, it will play a pivotal role in the commodities market drawing international investors and trading houses to its shores. Singapore is well positioned to transit from being a regional hub to a global commodities trading hub.

Welcoming the exchange, Ms. Rebecca Lee, a senior team member at SingaporeSetup.com said "Singapore as an international financial center aims to establish itself as the Asian commodity trading hub. The new generation international commodity and derivative trading platform is no doubt a significant milestone to this effect. In fact, the government had announced tax incentives in 2004 to promote commodities derivative trading sector in Singapore, and last year the incentive scheme was further enhanced by relaxing certain restrictions on CDT companies and by extending the 5% concessionary corporate tax rate to 2013. The pan-Asian exchange will escalate Asia's role in the commodities trading market. Most of the international trading houses are turning towards the Asian markets to hedge and Asia will continue to be a major engine of growth for the global commodity market. In this scenario Singapore with its comprehensive industry infrastructure and efficient platforms will remain a preferred destination for investment companies, international trading companies and other financial sector players like brokers, analysts and fund managers".
loading...
Author:
Artice Source: http://www.articlesphere.com

Related Articles in Finance


People interested in the above article are also interested in the related articles listed below:

The Spring Budget 2017 was announced amidst much anticipation however, many feel that it was not the best job done by the exchequer. Although he covered different dimensions and tried to create a balance between various sectors, the budget is still not considered an exciting one by the experts. Some of the points work well on a long term basis while some are good for immediate effect.
Before you purchase your first home and finance your very first mortgage there are a few things to consider. Consider the following as you embark on your new life journey into homeownership. Before you hire a realtor or start looking at homes it is important to meet with a mortgage broker. Once you have met with a mortgage officer you can determine if you have credit problems that need to be solved prior to looking for a home.
Purchasing a contractor license bond is almost always a requirement of contractors before they are licensed to work on construction projects. Depending on the laws within the state, county, city or even subdivision a contractor license bond could be required. Without the necessary contractor license bond in place the contractors often cannot obtain the license that is needed to provide construction services.

More in Finance

Excellent, Larry. Thank you for taking the new article directory technology and making it work to the max. I encourage everyone to keep contributing and contributing regularly. I can attest to the fact that this site is already a strong directory in a field of many. Kudos to Larry!

Matthew C. Keegan
The Article Writer

 

I find it a delight to use both as an author and a publisher. It is full of nice little surprises that make the whole process of writing, reading and publishing articles a complete delight. This is one that comes out tops and beats the rest hands down.

Eric Garner
Managing Director
ManageTrainLearn

 

I did a Google search and came across your site. It was exactly what I was looking for and was elated to find such a broad range of articles. As I am launching a free magazine in a small town in Florida, I wanted to be as resourceful as possible while still being able to provide some content that is interesting and well written. Your site has all the variables in the mix. Excellent Site hitting all the notes in the scale sort of speak.

Mo Montana
Florida, USA

Article Topics

 
Copyright © 2005 - by Larry Lim, Singapore - Article Search Engine Directory at ArticleSphere.com™
All Rights Reserved Worldwide. All Trademarks and Servicemarks are the property of the respective owners.
ArabicBulgarianCatalanChinese (Simplified)Chinese (Traditional)CzechDanishDutchEnglishEstonianFinnishFrenchGermanGreekHaitian CreoleHebrewHindiHungarianIndonesianItalianJapaneseKoreanLatvianLithuanianNorwegianPersianPolishPortugueseRomanianRussianSlovakSlovenianSpanishSwedishThaiTurkishUkranianVietnamese