It was in November 2013, when Atlanta-based InterContinental Exchange Group announced the acquisition of the Singapore Mercantile Exchange and Clearing Corporation. A couple of months later, the company unveiled its plans related to the management of the firm’s Singapore unit.
The renamed units ICE Futures Singapore and ICE Clear Singapore have been entrusted in the capable hands of industry veteran Lucas Schmeddes. The $150 million acquisition is now starting to pay back for the InterContinental Exchange as the Singapore-based subsidiaries begin operations.
A total volume of 8,847 contracts traded and cleared on the opening day
Both companies have begun operating as an approved exchange and approved Clearing House in Singapore on Tuesday, November 17th, 2015. A total volume of 8,847 contracts traded and cleared on the opening day across energy, gold and foreign exchange (FX).
ICE has become the first international exchange group to establish a permanent presence in Singapore. The contracts that were selected for the launch are concentrated on popularly traded instruments in the region and include mini Brent futures, mini gasoil futures, kilo gold futures, mini onshore renminbi futures and mini offshore renminbi futures.
Commenting on the launch, Mr. Schmeddes said, “With a range of contracts across energy, gold and FX, our Singapore exchange and clearing house provides market participants with effective tools for managing price risk locally.”
With the launch of the Singapore-based subsidiaries ICE is aiming to take advantage of the shifting geography of the futures traders market. As the Asian financial markets continue to develop they require increasingly reliant infrastructure and prominent Western companies have a good chance of gaining market share with a local presence.
The company also noted that in recent years, the trading activity from Asia in ICE's benchmark commodity and interest rate products has been gradually increasing. With supervision from the Monetary Authority of Singapore, both ICE Futures Singapore and ICE Clear Singapore are likely to attract Asian traders.
