Published On: Sun, Apr 7th, 2013

SGX Consults Public on New FX Futures Contracts

Michael Syn, Head of Derivatives at SGX

Michael Syn, Head of Derivatives at SGX

Singapore Exchange (SGX) is consulting the public on its four proposed foreign exchange (FX) futures contracts, namely the US dollar/Singapore dollar, Indian rupee/US dollar, Australian dollar/US dollar and Australian dollar/Japanese yen pairs.

These cash-settled FX futures contracts will be traded on and cleared by SGX.

SGX seeks the views of the public and market participants on the following proposals:

• Position Limits – The position limit for each FX futures contract will be 10,000 contracts net on the same side of the market and in all contract months combined.

• Price Limits – In line with the underlying over-the-counter FX markets and the practices of other exchanges, these contracts will have no price limits unless SGX prescribes them. This allows free price movements in response to market developments and information.

• Termination of trading – The last trading day for the FX futures contracts will be two business days prior to the third Wednesday of the contract expiry month, except for the Indian rupee/US dollar futures. For Indian rupee/US dollar futures, the last trading day will be two business days prior to the last business day of the contract expiry month.

• Final Settlement Price – The suite of FX futures contracts will be settled in cash based on proven and widely-accepted methodology.

SGX targets to introduce the new suite of FX futures contracts in the third quarter of 2013.

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