SMX completes first trading, clearing and settlement cycle

Multi-product commodity and currency derivatives exchange builds upon its proven and scalable systems and risk management.

Singapore Mercantile Exchange (SMX), the first pan-Asian multi-product commodity and currency derivatives exchange, successfully completed its first trading, clearing and settlement cycle.

The Exchange’s maiden Daily Pay-Ins and Pay-Outs were completed at 9.30am and 10.30am respectively Singapore time on 1st September 2010, after a 16½ hour trading session which started at the launch of SMX on 31st August at 10.00 am and ended at 2.30 am the following morning, spanning markets from Japan, Asia Pacific and Europe to the U.S. according to an SMX report.

The first contract to be traded on the SMX was by J.P. Morgan, via a Singapore-based brokerage.
Mr Jignesh Shah, Vice-Chairman of SMX and Chairman & Group CEO of Financial Technologies (India) Limited, said:

“Our inaugural trading, clearing and settlement cycle was successfully completed and we would like to thank all technology, data services partners and Members of the Exchange for a good start.”

“At this point in time our focal point is establishment of a rock solid foundation for trading and risk management systems with a good measure of emphasis on research and implementing robust operational procedures,” Mr. Shah added.

Mr Thomas J. McMahon, Chief Executive Officer of SMX, said: “The most important part is that a full trading, clearing and settlement cycle has been completed successfully – while pay-ins and pay-outs for a full trading cycle from 10am to 2.30am the next morning was successfully made operational.”

Phillip Futures cleared the Exchange’s first trade on behalf of one of its customers. SMX is licensed and regulated by MAS as an Approved Exchange for multi-currency and multi-asset clearing, trading, and pricing for contracts with guaranteed settlement and delivery.

SMX went live on 31st August with four futures products consisting of two leading crude oil benchmarks, Brent priced in Euros and West Texas Intermediate (WTI), its maiden currency pair, Euro-US Dollar Currency Futures, and the first Gold futures contract in Singapore to be settled via physical delivery. Further products will be rolled-out in market segments such as Energy, Agriculture, Metals (precious and base), Currencies and Indices.