10.24.2017
By John D'Antona Editor, Traders Magazine

SGX Launches US Group in Chicago

10.24.2017 By John D'Antona Editor, Traders Magazine

Singapore Exchange (SGX) announced that it has expanded its international footprint with the opening of SGX America in Chicago.

Building on its existing international connectivity, SGX’s presence in the U.S. will enable it to better serve a growing client base in this region and meet the rising international investor appetite to access and risk manage Asian exposure.

SGX operates a unique pan-Asian multi-asset marketplace that provides international investors with exposure to 95% of Asia’s GDP through the world’s most liquid offshore market for the benchmark equity indices of China, India, Japan and ASEAN. SGX America will enhance access for investors in North America to risk management solutions and price discovery tools that also span foreign exchange and commodities.

Loh Boon Chye, Chief Executive Officer of SGX, said, “This is an important milestone in SGX’s international expansion strategy and reinforces our status as Asia’s most connected exchange. SGX’s knowledge of the Asian markets, and the diversity of our Asia-linked futures and options will resonate with  investors in North America who are increasingly looking East for growth opportunities across asset classes. A physical presence in the U.S. will also better enable us to develop connectivity with the world’s largest equities and fixed income market.”

Michael Syn, Head of Derivatives at SGX, said, “The opening of SGX America complements the global nature of SGX’s products and platforms and is a logical step following the extension of our now round-the-clock trading and clearing hours. Given the size and depth of the market, spanning financial institutions, funds, trading firms and Futures Commission Merchants, the U.S. is an important market for us, both for our financial and commodity derivative products. Chicago is home to a vibrant trading community with a long history in the global futures and options market, making it a natural first base for us.”

SGX’s new high-performance derivatives trading platform, SGX Titan, was launched in November 2016, extending trading hours of SGX’s derivatives market to one of the longest in Asia, continuing through European hours and covering the U.S. market close. In the six months following the launch of SGX Titan, average monthly T+1 volumes for listed financial derivatives increased 13 percent compared to the six months prior to the launch, with participation increasing in both Europe and the U.S.

SGX was one of the first exchanges globally to adopt the Principles for Financial Market Infrastructure (PFMI) and is certified as a Qualifying Counterparty under the Basel III framework. Its growing portfolio of USD-denominated risk management solutions are approved for trading by direct access in North America by the Commodity Futures Trading Commission (CFTC).

Related articles

  1. This year's traded notional exceeded €100m compared to last year’s €20m.

  2. Clients can access UMBS TBA futures alongside U.S. Treasury and short-term interest rate contracts.

  3. BIS Warns on Asset Management

    'Crypto carnage’ has shown how meaningful protections for investors, markets, and the public are needed.

  4. Volatility Back 'With a Vengeance'

    In May CME Ether futures had the highest volumes since launch.

  5. Basel Committee Consults on Interest-Rate Risk

    The use of risk-free rates has also reached an all-time high.