26 July 2018
On 10 July 2018, Singapore Exchange (“SGX”) announced that it will launch SGX FlexC FX Futures, a new foreign exchange (“FX”) solution which will offer market participants the ability to trade customisable FX futures in an over-the-counter (“OTC”) manner and clear the trades on SGX’s platform.
SGX FlexC FX Futures, developed in consultation with market participants and targeted to be launched on 27 August 2018, will enable bilateral trades that are privately negotiated with tailored expiration dates to be registered and cleared like a standard SGX FX futures contract. This feature will be available for INR/USD, KRW/USD, TWD/USD, USD/CNH and USD/SGD contracts.
SGX FlexC FX Futures aims to help streamline the regulatory obligations faced by market participants. With FX markets moving towards central clearing, this new feature will offer an effective way to enhance operational efficiencies, lower costs and counterparty credit risk, and keep bilateral trading relationships at the same time.