Singapore Exchange (SGX) and the London Metal Exchange (LME) successfully launched LME-SGX copper, aluminium and zinc futures today at 8.00am Singapore time to provide retail investors in Asia and beyond easy access to global metals markets.
The new futures contracts have already attracted strong interest with three market makers and 20 active traders signed up to the initiative. The market markers are GS Energy Partners LLC (from USA), Susquehanna Pacific Pty Ltd (from Sydney) and a market maker from Asia Pacific (confidentiality requested).
The futures will have 12 consecutive contract months listed for trading and will be cash settled at expiry based on the LME Official Cash Settlement Price for the relevant metal. The trading hours for the new contracts will cover the Asian trading day (T-session) from 8:00am to 3:20pm Singapore time and the European trading day (T+1 session) from 4:00pm to 2:00am the following day, Singapore time. The contracts are traded and cleared exclusively on SGX.
Jeremy Ang, Executive Director, Commodities at SGX said, "We are pleased to have successfully launched the LME-SGX metal futures this morning. With Asia as a major producer and consumer in the global commodities space, the LME-SGX futures provide an effective hedging or trading tool in the international marketplace, and further enhance Singapore's position as a commodities trading hub."
Liz Milan, Managing Director LME Asia, said, “The growth in trading of metals has been exceptional in Asia at industry and institutional levels. However, there is also a high level of interest from retail investors and funds looking for more accessible products that give them exposure to metals prices and help them broaden their investment portfolio. The LME-SGX tie-up is a perfect opportunity for these individuals.”
The U.S. Commodity Futures Trading Commission (CFTC) Division of Market Oversight has no objection to the contracts being traded by direct access from within the U.S.
Please see Appendix for contract specifications, or visit www.sgx.com/commodities.