Published On: Thu, May 13th, 2010

Singapore Mercantile Exchange Appoints RBS as Settlement Bank

SMX continues to build traction with banking, financial and trading institutions of in Asia as its gets closer to its launch in August

Pan-Asian multi-product commodity derivatives exchange Singapore Mercantile Exchange (“SMX” or “the Exchange”) announced May 13 that the Royal Bank of Scotland (RBS) has been appointed as its Settlement bank.

On signing the appointment agreement today, Thomas J. McMahon, Chief Executive Officer of SMX said, “For an international exchange like SMX, the importance of having a reputed settlement bank on board is a key emphasis. The addition of RBS to the list of our settlement banks expands the choices for our clearing members. RBS, with its solid infrastructure, efficient operations, and global presence is ideally suited to support the trading activities of SMX members across time zones.”

“RBS will leverage its strength in global clearing and settlement capabilities to provide seamless electronic funds transfer and settlement processing services to SMX members, wherever they are around the world”, said Alan Goodyear, Head of Global Transaction Services, Asia Pacific, RBS.

As part of this deal, SMX will work with RBS, a top-five global transaction bank. RBS Global Transaction Services (GTS) comprises three key areas: global cash and liquidity management, global trade services and merchant acquiring and commercial cards. RBS GTS has on the ground presence globally as well as a vast network of partner bank agreements.

RBS joins Standard Chartered and ICICI Bank as a settlement bank of SMX.

SMX announced earlier this month that the exchange will go live in August 2010 on its state-of-the-art electronic trading platform. In the preceding months of June and July, SMX will be conducting conformance testing with the ISVs and industry wide testing with member firms prior to commencing trading operations in August.

As Singapore’s first licensed commodity derivatives exchange, SMX will offer a comprehensive product range that will include precious metals, base metals, energy, agriculture commodities, commodity indices, currencies and other financial instruments. SMX aims to synchronise derivatives and physical trading within the Asian time zone, and offer new derivatives products for effective risk management.

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