Singapore Exchange to Start Offering FX Futures Trading Via EBS

Inter-dealer broker ICAP and the Singapore Exchange (SGX) have announced a strategic partnership including various initiatives mainly related to the evolution of the foreign exchange market in Asia.

ICAP’s electronic foreign exchange EBS platform and SGX will be collaborating in the development of new products for the Asian currency market and complement the FX over-the-counter (OTC) and futures markets in the region.

Initially, EBS and SGX will offer their customers access to SGX listed currency derivatives via the EBS platforms, to be cleared by SGX. Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term and clearing of a select number of SGX Asian FX Futures contracts will be available in specific large sizes called Negotiated Large Trades (NLTs).

The initiative is subject to regulatory approvals, as the Monetary Authority of Singapore leverages its strong regulatory framework. The companies are planning to implement the initiative in the third quarter of 2015.

EBS is also exploring the opportunity to establish an additional matching engine in Singapore, to be co-located in an SGX hosted facility.

Since launching its foreign exchange products, SGX has introduced a total of eleven FX Futures contracts, including the popular SGX Indian Rupee (INR/USD) futures in November 2013 and the SGX Chinese Renminbi (USD/CNH and CNY/USD) futures which were added more recently in October last year.

More than US$26 billion in aggregate notional value has been traded on the SGX since launch. The exchange is also the first central counterparty in this region to clear OTC non-deliverable (ND) FX forwards in seven Asian currencies and interest rate Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term.