SGX Teams Up with Tullett Prebon, Launching Index Offering in Middle East

Singapore Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (SGX) and Tullett Prebon have teamed up to launch a new liquefied natural gas (LNG) spot index in Dubai, Kuwait, and India (DKI), part of a burgeoning partnership that will look to foster improved price discovery and Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term in the region.

Dubai, Kuwait, and India are amongst the fastest growing locales for the trading of LNG spot indices – the two groups will be offering a DKI Sling, which includes reference price for LNG Delivered Ex-Ship across three countries, thereby offering an increase in spot trading volumes.

The initiative follows on the heels of an earlier introduction this past January that portended a Q2 2017 launch date. The new offering will seek to provide an independent physical price marker as the industry moves away from oil-linked pricing and towards gas-on-gas pricing.

In particular, Energy Market Company (EMC), SGX’s wholly-owned subsidiary, will act as the index administrator, also publishing the DKI Sling on Mondays and Thursdays. Tullett Prebon was responsible for developing the index, given its role as one of the world’s largest brokers of physical LNG cargoes.

According to Michael Syn, Head of Derivatives at SGX, in a statement on the partnership: “We are pleased to collaborate with Tullett Prebon as we expand our suite of LNG indices beyond Asia. The DKI Sling aims to improve benchmarking and risk management in the Middle East and India region, meeting the specific needs of the physical LNG market as it evolves.”

“We see the development of a trusted and transparent price for the Middle East and India region crucial in helping LNG participants mark-to-market trading exposure. SGX and the methodology behind the Sling indexes are already highly regarded by the industry, so we think this is the ideal partnership for establishing a credible regional price. This can subsequently be used as an underlying index in physical and financial trades,” added Melissa Lindsay, Global Head of LNG at Tullett Prebon.