SGX inks deal with ICAP to boost forex capacity

It will be implemented by 3Q15.

SGX is collaborating with ICAP, a London-based markets operator and provider of post trade risk mitigation and information services, to boost the growing Asian currency market.

EBS, ICAP’s electronic foreign exchange business, and SGX will collaborate and develop a new range of Asian currency products and services that complement the FX OTC and futures markets in Asia.

EBS and SGX will initially offer customers access to SGX listed currency derivatives via the EBS platforms, to be cleared by SGX.

Through this collaboration, customers will be able to execute and clear selected SGX Asian FX Futures contracts in specific large sizes called Negotiated Large Trades. Subject to respective regulatory approvals, EBS and SGX plan to implement this initiative in the third quarter of 2015.

EBS is also exploring the opportunity to establish an additional matching engine in Singapore, to be located in an SGX hosted facility, which would facilitate the execution of joint business opportunities and product offerings.