SMX Signs MOU With Vietnam’s Largest Black Pepper Exporter
Singapore Mercantile Exchange (“SMX”), the first pan-Asian multi-product commodity and currency derivatives exchange, signed a Memorandum of Understanding (MOU) September 28 with leading international physical Black Pepper trader and Vietnam’s largest Black Pepper exporter, Phuc Sinh Corporation, in an exclusive partnership to explore advancement strategies for the global Black Pepper trading markets.
According to the MOU, the Exchange and Phuc Sinh will co-operate on development plans for specific segments within the entire supply chain of global Black Pepper markets, including but not limited to storage and delivery mechanisms and/or facilities.
SMX and Phuc Sinh have also committed to improving and sharing research, information and data to help grow the Black Pepper supply chain along with import and export marketplaces for agricultural commodities across the board.
SMX also announced it will launch the world’s first international Black Pepper Futures Contract (Contract Symbol: SMPEPPER), with physical delivery-based settlement, as the first agricultural commodity derivatives product to be traded on its cutting-edge electronic platform.
SMX is at present working with relevant industry partners to create awareness about the new Contract, while collecting their feedback to streamline the physical settlement procedure.
Phuc Sinh, through ongoing cooperation within the MOU, will be a key partner in the development and growth of the SMX Black Pepper Futures market.
Mr. Thomas J. McMahon, Chief Executive Officer of SMX, said: “Aside from being a global leader in the pepper trades, Phuc Sinh is also active in a number of other commodity products where cultivation and production is predominantly Asian-based. As a pan-Asian platform for commodities, SMX has found itself a robust partner adding optimal value to existing market features, and we look forward to strong co-operative developments with Phuc Sinh.”
Mr. Phan Minh Thong, President of Phuc Sinh Corporation, said: “We are happy to sign this MOU with SMX and look forward to partnership opportunities. Aside from production and exports, we also own and operate all other elements of the supply chain such as storage, cleaning and lab testing. Thus we are able to contribute both knowledge and experience to this MOU, for the benefit of all the industry players.”
Phuc Sinh Corporation is Vietnam’s largest exporter of Black Pepper, shipping out 21,000 metric tonnes last year to more than 70 countries over five continents. Phuc Sinh alone accounted for 7% of the world’s total export volumes in 2009.
Aside from production, storage and cleaning facilities for Black Pepper, Phuc Sinh also owns and operates facilities for coffee, white rice, desiccated coconut, cashew nut, cinnamon and star aniseed among other agricultural commodities.
SMX obtained Approved Exchange status from the Monetary Authority of Singapore (MAS) in 2010 and went live for trading on 31 August with four products: Brent Crude Oil Futures denominated in Euros, WTI Crude Oil Futures, Euro-US Dollar Currency Futures, and the first Gold Futures Contract with physical delivery-based settlement in Singapore.