SGX inks deal to launch listed block futures on EBS Market

It will bridge FX over-the-counter and futures markets.

The agreement will enable more effortless trading as market participants can now seamlessly access an enhanced liquidity pool for trading Asian Spot, NDF and Futures instruments--all under the EBS market.

According to a statement by the local bourse, the agreement with EBS BrokerTec, ICAP’s market-leading electronic foreign exchange and fixed income business will allow SGX listed FX block futures on EBS BrokerTec’s FX central limit order book (CLOB), EBS Market, a primary venue for e-traded currencies.

The listed FX block futures will be available on the EBS Market by the second quarter of 2016, pending regulatory approval.

“Trades will be cleared through SGX’s next generation trade registration system, Titan OTC. The initial offering will include SGX block futures in INR, KRW, CNH, SGD and CNY,” SGX said.

Meanwhile, SGX said the direct connectivity of EBS into Titan OTC will provide customers with automated straight-through-processing for trades matched electronically on EBS Market and SGX’s central clearing will provide increased capital efficiency.

While this is the first market initiative between EBS BrokerTec and SGX, the statement says it is the start of a long-term strategic partnership.