Singapore Mercantile Exchange

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Singapore Mercantile Exchange

Headquarters	Singapore
Key People	Ang Swee Tian, Chairman; Jignesh Shah, Vice Chairman; Leo Melamed, Chairman of the Advisory Board
Products	Futures and options contracts in commodities including precious metals, base metals, agricultural commodities, currency pairs and commodity indices
Web site	http://www.smx.com.sg

The yet-to-be-launched Singapore Mercantile Exchange (SMX) is a Singapore-based exchange that will facilitate commodities trading in the Asian time zone, providing a trading platform for futures and options transactions on precious metals, base metals, energy, agricultural commodities, currency pairs, carbon credits and commodity indices. SMX is currently in the process of obtaining the necessary regulatory approvals from the Monetary Authority of Singapore (MAS) to begin operations.^[1]It's anticipated that the exchange will have an initial capitalization of 50 million Singapore dollars (US$ 37 million) and launch in early 2009.^[2]

1 History
2 Products and Services
3 Key People
4 References

History

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The establishment of the exchange was announced at the Global Financial Market Summit 2008 in Singapore on July 9, 2008.^[3] The announcement came in a ceremony by Jignesh Shah, chairman and CEO of Financial Technologies along with Minister For Trade & Industry and Deputy Chairman, Monetary Authority of Singapore Lim Hng Kiang, former president of the Singapore Exchange (SGX) Ang Swee Tian and Chairman Emeritus of the CME Group (CME), Leo Melamed.^[4]

Global Financial Market Summit 2008 Video

Melamed was named chairman of the advisory board of the newly announced Singapore Mercantile Exchange^[5] at the July 9 ceremony.^[6] In the first week of August of 2008 Melamed resigned from the chairman of the advisory board position at the new Singapore exchange amid claims Melamed had not received approval to accept the position from the CME Group's general counsel.^[7]

The Singapore Exchange and Chicago Board of Trade launched a derivatives market for Asia-based commodities in September of 2006, but it was discontinued late the following year.^[8]

Products and Services

Once opened, SMX will act as the counterparty for each transaction executed on its platform through settlement guarantees provided by its clearing house, the Singapore Mercantile Exchange Clearing Corporation, a 100 percent subsidiary of the Singapore Mercantile Exchange.

SMX is promoted by exchange electronic network company Financial Technologies, a $1.84 billion (as of 31st March 2008) player in creating and operating technology-centric financial markets in the Middle East and India.

Dealers, brokers and their customers will be able to connect to SMX's trading platform through a number of connectivity options, including leased lines, dial-up, multi-protocol label switching and the Internet either with a front-end provided by the SMX or a front-end developed by independent software vendor (ISV).

On SMX's platform, the best buy order will be matched with the best sell order based on a price-time priority.

Key People

Chairman, Ang Swee Tian
Vice Chairman, Jignesh Shah
Chairman of the Advisory Board, Leo Melamed

Singapore legal firm Rajah & Tann will have a representative involved in the process of forming the exchange. Partner David Yeow has been appointed as a member of the advisory board.^[9]