MAS approves third derivatives exchange

APEX plans to launch trading in Q2 2018 and started to admit trading and clearing members.

Asia Pacific Exchange (APEX) received approval from the Monetary Authority of Singapore (MAS) to operate Singapore’s third derivatives exchange as well as a clearing house.

According to a press release, APEX plans to launch trading in the second quarter of 2018 and has commenced the process to admit trading and clearing members. APEX will offer futures and options contracts covering both commodity and financial derivatives products, including agriculture, energy, petrochemical, metal, interest rates and stock indices. Its first contract is a USD-denominated physically-delivered palm olein futures.

APEX founder and chief executive officer Eugene Zhu Yuchen said, “Singapore’s well-regulated financial sector, efficient financial and technological infrastructure and deep talent pool, make the Republic an ideal location for derivatives trading.”

APEX’s palm olein contract, when launched, will complement Bursa Malaysia Derivatives Exchange’s crude palm oil futures contract and Dalian Commodity Exchange’s RBD palm olein futures contract. It will provide additional avenues for inter-market hedging opportunities for edible oil hedgers and traders.

Subject to regulatory approvals, APEX’s product pipeline will also include a suite of commodity, agricultural and financial contracts. APEX’s vision of bringing Chinese and international market participants onto a common well-regulated and efficient platform was conceived by Mr Zhu, who relocated with his team to Singapore in 2016.