SGX Links Global Liquidity Pools to Asian Economies
The hubs are the first by an Asian exchange and will provide customers with convenient and cost-effective local connections to SGX markets.
SGX expects to begin operating the hubs once pre-trade risk controls at the exchange level in the derivatives market are made available to participants in April. The pre-trade risk controls are in line with the Futures Industry Association’s recommendation for exchange-hosted risk controls.
By connecting to SGX’s hubs, global investors can access the world’s biggest offshore market for Asian equity futures. These include the China A50 futures, the only offshore futures for China’s domestic A-share market.
In addition to the hubs, SGX is also pursuing alliances with suitable partners to enable Asian investors to easily participate in global markets.
The international hubs are part of SGX’s S$250 million technology initiative to deliver the best access to fast-growing Asian economies. Other components of the initiative are a world-class Singapore data centre with co-location services and the world’s fastest trading engine Reach.
“Customers coming to SGX’s hubs can access Asia’s biggest and most promising economies at lower cost and greater convenience. Our trading community will benefit from increased opportunities and greater liquidity as we continue to grow our presence in more international financial centres,” said SGX CEO Mr Magnus Bocker. SGX is exploring Hong Kong and Tokyo as the next locations for its hubs