Published On: Thu, Aug 2nd, 2012

SMX Proposes Introduction of Negotiated Trade Facility

V Hariharan, CEO of SMX

V Hariharan, CEO of SMX

The Singapore Mercantile Exchange is consulting the public on its proposal to introduce the Negotiated Trade Facility (NTF).

On the back of increasing trading interest on the Exchange, it plans to introduce this new facility in the latter part of this year, subject to regulatory approval.

The Negotiated Trade facility will allow Exchange participants to report the details of a large trade that has been privately negotiated outside of the Exchange‟s trading system and which meets the Exchange‟s prescribed minimum thresholds.

The Exchange intends to set the minimum order quantity for a Negotiate Trade at thirty (30) lots of any contract or a value of USD 1 million, whichever is lower.

The Exchange intends to permit Negotiated Trades for all existing SMX contracts and the facility will be available throughout the trading hours of any business day.

All Negotiated Trades must be reported by a Member of the Exchange. Members must report all Negotiated Trades to the Exchange as close to real time as possible, but no later than fifteen (15) minutes from the trade negotiation.

Negotiated Trades reported through the facility will not form part of the normal order book, but information on the trades will be made available to market participants through the Exchange‟s website. The Exchange shall publish on its website the details of each Negotiated Trade within five (5) minutes of the trade being successfully registered through the Negotiated Trade Facility.

V Hariharan, CEO of SMX, said “With growing trade interest on SMX, we would like to offer this added feature so that members can use the platform for large negotiated bulk deals under the safe systems of the exchange platform and have the negotiated deals cleared efficiently and seamlessly through the SMX Clearing Corporation.”

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