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SGX LAUNCHES SGX ASIACLEAR FACILITY FOR OTC CLEARING AND CLEARS FIRST OTC TRADES
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The Singapore Exchange (SGX) today officially launched the SGX AsiaClear facility for clearing of over-the-counter (OTC) oil swaps and forward freight agreements (FFAs).
This clearing facility for a suite of eighteen OTC products was officially launched by Mrs Lim Hwee Hua, Minister of State for Finance and Transport. (The list of products that can be cleared through SGX AsiaClear facility is attached in Annex 1.)
SGX is also pleased to announce that it cleared its first OTC oil trade in a deal on fuel oil swap between Bakri Trading and Chemoil International brokered by Ginga Petroleum, an Inter-Dealer Broker. The trades were cleared by ABN AMRO Futures and Fimat Singapore. The first OTC FFA trade cleared was a deal on Panamax Time Charter Basket between Noble Shipping Inc. and IMC Shipping Inc. The trade was brokered by Freight Investor Services Physical and cleared by ABN AMRO Futures and UOB Bullion & Futures.
Fifteen (15) SGX Clearing Members are providing SGX OTC clearing service. There are also 13 participating OTC Inter-Dealer Brokers who are connected to the SGX AsiaClear facility in order to electronically register customers' OTC trades for SGX clearing. (The list of Clearing Members and OTC Inter-Dealer Brokers are attached in Annex 2.)
Mr Hsieh Fu Hua, Chief Executive Officer, SGX, said, "The SGX AsiaClear facility for clearing of OTC trades is an important milestone in our vision as an Asian risk management hub as it provides credit risk mitigation to the oil, commodity trading and shipping industries. It also marks the beginning of a close partnership with OTC market participants in Asia including OTC brokers, and augurs well for Singapore's role as an international risk management, oil and commodity trading and maritime centre."
Mr Kola Luu, Executive Director of Financial Markets Strategy, Monetary Authority of Singapore, said, "The launch of SGX's AsiaClear facility is a good opportunity for Singapore to further strengthen its position as an energy derivatives trading hub and maritime centre. The SGX can also leverage on Singapore's position as Asia's oil pricing centre to develop an efficient regional energy derivatives clearing hub."
BG Tay Lim Heng, Chief Executive, Maritime and Port Authority of Singapore, said, "As Asia's first clearing facility for Forward Freight Agreements and oil derivatives, the SGX AsiaClear facility's broad range of activities will add to Singapore's vibrancy as an international maritime centre and oil trading hub. I am confident that Asian players will benefit from its global clearing hours as well as SGX's efficient financial network."
Ms Gina Lim, Deputy Director, IE Singapore said: "The growth in the global derivatives market, industry liberalisation in Asia, and the increasing demand for more sophisticated risk management tools present opportunities for Singapore to develop into a major risk management hub for commodities. Our pool of international trading companies engaging in significant physical trading and our active OTC oil trading market serve as strong foundations on which we can build."
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Notes:
Forward Freight Agreements (FFA) are over-the-counter products made on a principal-to-principal basis for trading specified time charter and voyage rates for forward positions.
OTC participants can now clear their transactions on the following products with SGX AsiaClear:
Oil Derivatives
- Dubai Crude Oil Swaps
- Brent-Dubai Crude Spread Swaps
- Gasoil Swaps FOB Singapore
- Kerosene Swaps FOB Singapore
- Naphtha Swaps FOB Singapore
- Singapore Fuel Oil 180 cst Swaps
- Singapore Fuel Oil 380 cst Swaps
- Any spread trades between the above 6 individual crude/products
Dry Bulk Voyage FFA
- Capesize Route C3
- Capesize Route C4
- GCapesize Route C5
- Capesize Route C7
Dry Bulk Time Charter FFA
- Panamax Route P2A
- Panamax Route P3A
Dry Bulk Time Charter Basket FFA
- Capesize Time Charter Basket Average 4 Routes
- Panamax Time Charter Basket Average 4 Routes
- Supramax Time Charter Basket Average 5 Routes
Wet Tanker FFA
List of SGX OTC Clearing Members:
- 1. ABN AMRO Futures (Singapore) Limited
- 2. Barclays Capital Futures (Singapore) Private Limited
- 3. DBS Vickers Securities (Singapore) Pte Ltd
- 4. Fimat Singapore Pte Ltd
- 5. Fortis Clearing Singapore Pte Ltd
- 6. Goldman Sachs Futures Pte Ltd
- 7. HSBC Futures (Singapore) Pte Ltd
- 8. Mizuho Futures (Singapore) Pte Ltd
- 9. Refco (Singapore) Pte Ltd
- 10. UOB Bullion & Futures Limited
- 11 Merrill Lynch (Singapore) Pte Ltd
- 12 Mizuho Futures (Singapore) Pte Ltd
- 13 Phillip Futures Pte Ltd
- 14 Man Financial (S) Pte Ltd
- 15 UOB Bullion & Futures Ltd
List of Participating OTC Inter-Dealer Brokers:
- 1 Amerex Petroleum #2 Singapore Pte Ltd
- 2 Aspen Oil Broking (S) Pte Ltd
- 3 Clarksons Securities Limited
- 4 Freight Investor Services
- 5 GFI Group Pte Ltd
- 6 Ginga Petroleum (S) Pte Ltd
- 7 Ocean Connect Singapore Pte Ltd
- 8 PVM Oil Associates
- 9 Radix Energy (Singapore) Pte Ltd
- 10 Spectron Energy (Asia) Pte Ltd
- 11 SSY Futures Ltd
- 12 TFS Energy (S) Pte Ltd
- 13 Tullett Prebon Energy (Singapore) Pte Ltd
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Issued on: 16 May 2006
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