New SGX feature to lower costs for bilateral trades

The SGX FlexC FX Futures will be launching on 27 August.

The Singapore Exchange (SGX) will launch SGX FlexC FX Futures that will enable privately-negotiated bilateral trades with tailored expiration dates to be registered and cleared like a standard SGX FX futures contract through an over-the-counter (OTC) procedure, an announcement revealed.

“Access to counterparty credit, especially for tenors longer than spot, is increasingly scarce and expensive in the OTC FX markets,”SGX head of derivatives Michael Syn said.

SGX noted that the new feature “will offer an effective way of enhancing operational efficiencies, lowering costs and counterparty credit risk, and keeping bilateral trading relationships at the same time”. It will also help to streamline the regulatory obligations faced by market participants.

Eyed for launching on 27 August, the feature will be available for INR/US$, KRW/US$, TWD/US$, US$/RMB and US$/$ contracts.