The Singapore Exchange is striving to open Asia's steel-derivatives market by rolling out steel futures and swap contracts in early 2014. The success of the new contracts will depend on whether traders from China use them.
Singapore Exchange reported a significant increase in the contribution to its derivatives-clearing fund. SGX also reported quarterly profits that increased 43%, marking its best annual performance since 2008, with second-quarter profits of $69.08 million. The earnings announcement comes ahead of assessments from the Committee on Payment and Settlement Systems and the International Organization of Securities Commissions, on behalf of world banks, to test Singapore's market infrastructure.
Singapore Exchange, which transacts more than 90% of the world's iron-ore swaps, has forged an agreement with the operator of China's physical iron-ore trading platform that could give it even more influence. The two entities plan to work together on market and product development, plus look into improving traders' ability to shift risk between the spot and derivatives markets.