SGX recognises the positive effects of exchange networks and by leveraging on its strengths in Asia, it is pro-actively forging alliances with like-minded institutions to augment its position as one of Asia's leading exchanges. These alliances are aimed at enhancing the attractiveness of the exchange's markets, increasing its market depth and liquidity, and extending the global reach of the exchange's products. Ultimately, the key objective is to ensure that the exchange creates value for its participants and shareholders.
On the securities front, SGX has kept participants ahead of the market's challenges by forging strategic alliances with other exchanges.
SGX and Amex® formed a joint venture to promote the listing and trading of Exchange Traded Funds (ETFs) in the region.
Five of the most popular and actively traded Amex® ETFs are currently listed on SGX. They are:
- S&P 500 SPDRs®
- DJIA DIAMONDS
- iSharesSM S&P 500 Index Fund
- iSharesSM MSCI Singapore Index Fund
- iShares Dow Jones U.S. Technology Sector Index Fund
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SGX and ASX formed the world's first securities co-trading linkage on 20 Dec 2001. The facility allows Singapore investors to trade selected securities on the ASX directly, through brokers in their own markets. Encouraged by the continual growth since its launch, SGX and ASX have doubled the list of securities available on the linkage. In 2006, owing to persistently low demand from investors, both ASX and SGX have agreed to discontinue the trading link by 29 September.
SGX is a member of the CCP12, an association of the world’s principal clearing organisations. SGX collaborates with other members of the association to improve global clearing, netting and central counterparty services. Other issues that are addressed include improved information sharing, enhancement of collateral usage, development of collaborative opportunities and identification of minimum standards for risk management practices.
The SGX derivatives market is a pioneer in global alliances, having been a partner with the Chicago Mercantile Exchange (CME) in a mutual offset arrangement since 1984. The alliances formed under this market are:
SGX signed an agreement with Baltic Exchange whereby the Baltic Exchange will provide its benchmark prices for the settlement of Forward Freight Agreements (FFAs) for dry bulk and wet tanker dirty routes cleared on SGX OTC Clearing. It will also provide its forward curve price assessments to facilitate accurate margin calculation.
This collaboration supports SGX’s efforts in developing its clearing facility for a wide suite of over-the-counter (OTC) FFA products that meet the needs of commodity trading and shipping participants. It aligns the SGX OTC FFA clearing services with industry practice.
SGX's Mutual Offset System (MOS) with CME is the world's 1st and most successful futures trading link. This truly fungible facility provides round-the-clock trading of Eurodollar and Euroyen futures and options. |
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