ICICI Bank Signs Up as Special Clearing Member of SMX
Singapore Mercantile Exchange (SMX), the first pan-Asian multi-product commodity and currency derivatives exchange, today announced that Singapore branch of ICICI Bank (“ICICI Bank”), India‟s second largest bank has come on board as a Special Clearing Member (SCM) of the Exchange. It is the first time that an Indian bank‟s branch in Singapore is clearing and settling futures contracts for an exchange based in Singapore. This is in addition to ICICI Bank‟s previous appointment as Settlement bank for SMX.
Eng Keat Lee, International Director – Asia Pacific of the Singapore Economic Development Board, said “We are delighted that ICICI has chosen Singapore to be the first location for an Indian bank to clear and settle future contracts for an exchange outside India. This will enhance Singapore‟s risk management infrastructure and further strengthen Singapore‟s growing position as a regional and global trading hub for the commodities industry.”
Framroze Pochara, Executive Director of SMX and CEO of SMX Clearing Corporation., said: “The appointment of ICICI Bank as a Special Clearing Member of SMX is a significant move for both parties. ICICI Bank‟s bold move to step out to be the first Indian clearing bank for an offshore exchange, speaks volumes about its ground-breaking position in the marketplace and SMX as a world-class exchange for derivatives trading during the Asian time zone.
It is with the same pioneering focus that SMX will be listing its product range – wide and diverse enough to be crossroads for the Asian physical and derivatives trading spheres, allowing for realistic price discovery and the creation of a broad-based Asian liquidity pool. Both parties are looking to set a base for a new Asian hub for global trading.”
Chanda Kochhar, Managing Director & CEO, ICICI Bank Limited, said, “Becoming a Special Clearing Member for SMX is part of our strategy to scale up our operations in Singapore, following closely on the opening of our first retail branch here. Singapore is the region‟s financial hub and the gateway to the Asia Pacific. We are happy to be building a relationship with Singapore‟s flagship commodities and derivatives exchange.”
As an SCM, ICICI Bank will clear and settle trades for its regional and international customers, including any other Non-Clearing Member (NCM) i.e. Broker Member or Trade Member, of the SMX commenced operations on 31 August 2010 with four SMX futures contracts which include two leading crude oil benchmarks – Euro-denominated Brent Crude and West Texas Intermediate (“WTI”), a currency pair – Euro-US Dollar Currency Futures Contract and the first Gold futures contract in Singapore to be settled via physical delivery.