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Singapore Exchange (SGX) said on Tuesday it is seeking feedback on its proposed launch of non-ferrous metals futures with the London Metal Exchange (LME).
To tap the fast-growing demand for metals trading in Asia,the two exchanges said in July that they would be teaming up to develop cash-settled, “mini” metals futures contracts to betraded and cleared through SGX.
To tap the fast-growing demand for metals trading in Asia,the two exchanges said in July that they would be teaming up to develop cash-settled, “mini” metals futures contracts to betraded and cleared through SGX.
They plan to introduce copper, primary aluminium, zinc and nickel futures contracts and SGX is inviting comments to be submitted by September 9 on issues such as position limits and final settlement price, SGX said in a statement.
“The introduction of LME-SGX Non-ferrous Metals Futures complements SGX’s existing commodities suite, thereby maintaining Singapore’s status as a major Asian commodity trading centre,” it said on its web site.
“SGX expects the demand for the LME-SGX Non-ferrous Metals Futures to come from proprietary traders, retail investors and physical players who are active in the Asian region.”
But as interest grows in Asia, the competition in the commodities trading space is heating up. On Tuesday, the Singapore Mercantile Exchange (SMX) launched gold, oil and euro-dollar futures.
SMX has identified 34 products in the metals, energy, currencies and agricultural markets that could eventually trade on the exchange.
Traders also say that Shanghai Futures Exchange (SHFE) is developing into a benchmark for the region in metals trading as
The LME, the world’s premier exchange in non-ferrous metals, aims to take advantage of the booming growth in Asia by attracting more Asian business. Its trading volumes jumped 7.5% to more than 59 million lots in the first half of 2010.
The proposed position limits for the zinc and aluminium futures are 10,000 contracts while for copper and nickel are 7,000 contracts.
The consultation paper on the proposed introduction of the LME-SGX non-ferrous metals futures, which details the rationale and proposed contract specifications, will be available on the SGX website www.sgx.com from Tuesday, it said.
