ICE Futures Singapore

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ICE Futures Singapore
ICEnewlogocolor.jpg
Founded 2015
Headquarters Singapore
Key People Jeffrey Sprecher, Chairman, CEO; Charles Vice, President, COO; David Goone, Senior Vice President, Chief Strategic Officer; Scott Hill, CFO
Products Gold, renminbi and Brent crude oil futures contracts
Twitter @ICE_Markets
LinkedIn Profile
Website www.theice.com/futures-singapore
Releases Company News

ICE Futures Singapore is the Singapore futures exchange InterContinentalExchange launched on November 17, 2015 along with ICE Clear Singapore. ICE launched the exchange and clearing house in November 2015.[1] ICE Clear Singapore will act as the central counterparty for trades conducted at ICE Futures Singapore.

The launch of ICE Futures Singapore made it the most significant competitor to SGX, the dominant local derivatives market.[2]

The exchange and clearing house initially listed five contracts: mini Brent, mini gasoil, kilo gold, and mini onshore and two mini offshore Renminbi futures. The gold contract is physically settled and the rest cash-settled.[3]

The mini-Brent contract is sized at 100 barrels, 1/10th of ICE's London-listed contract. The Chinese cotton and sugar contracts are based on similar futures traded on the Zhengzhou Commodity Exchange.[4]

The exchange and clearing house are being run by Lucas Schmeddes, the president and chief operating officer of ICE Futures and ICE Clear Singapore.

History

In November 2013, ICE announced the acquisition of the Singapore Mercantile Exchange, including its clearing house subsidiary, the SMX Clearing Corporation (SMXCC).[5] The $200 million deal, completed in February 2014, gave ICE a foothold in Asia and made it the first non-Asian exchange to own a clearing house there. [6][7]

ICE kept the license but relaunched the exchange and clearing houses with new contracts. Regulatory and other delays pushed the launch date to the second half of 2015.

Initial plans also included physically-settled cotton and sugar contracts based on similar futures traded on the Zhengzhou Commodity Exchange, but the soft commodity contracts were subsequently postponed.[8]

Products

All contracts except for the One-Kilo Gold futures contract, will be cash settled. The One-Kilo Gold futures contract will be physically settled. ICE Futures Singapore will operate as an approved exchange under the supervision of the Monetary Authority of Singapore.[9] The first tranche of products include the following regional futures contracts:

  • ICE Mini Brent Crude Futures - (symbol BM), contract size of 100 barrels, 1/10 of ICE's London-listed contract, cash settled
  • ICE One-Kilo Gold Futures - (symbol AU), physically settled, with delivery in Singapore
  • ICE Chinese Renminbi Futures - (symbol CNY), contract size of 1,000,000 renminbi

References

  1. Third time unlucky as ICE delays Singapore futures market again. Bloomberg.
  2. ICE kicks off Asian commodity futures hub. The Financial Times.
  3. ICE goes live with its first Asian exchange. FOW.
  4. ICE to Start Yuan, Commodities Futures in Singapore. Bloomberg.
  5. Exchange-to-Acquire-Singapore-Mercantile-Exchange-Broadens-Exchange-and-Clearing-Operations-to-Asian-Markets-and-Customers/default.aspx Intercontinental Exchange to Acquire Singapore Mercantile Exchange; Broadens Exchange and Clearing Operations to Asian Markets and Customers. ICE.
  6. ICE secures foothold in growing Asian derivatives market. The Financial Times.
  7. ICE completes acquisition of Singapore Mercantile Exchange. Finextra.
  8. ICE to Start Yuan, Commodities Futures in Singapore. Bloomberg.
  9. ICE Futures Singapore. ICE.