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SINGAPORE, Sept. 19 (Xinhua) -- Singapore Exchange (SGX) is adding some Asian foreign exchange (FX) futures contracts on Renminbi, yen and Thai Baht, it said on Friday.
The new foreign exchange futures contracts include those on pairs such as USD/CNH, CNY/USD, USD/JPY and THB/USD. The launch of the new products followed the success of a suite of six Asian forex futures pairs launched in November last year.
SGX Chief Executive Officer Magnus Bocker said that the enhanced suite widens the window for even more investors to tap on the growth opportunities across major Asian markets and manage their currency exposures at the same time.
"The SGX RMB futures complements the range of RMB-denominated investment products in Singapore, and will further boost the growth and deployment of the RMB deposits pool in Singapore," he said.
The bourse also announced on Friday that Bank of China will be the pioneer market maker for its Renminbi futures. The bank will also be SGX's first Chinese settlement bank for its derivatives market.
This development underpins a partnership agreement signed between the bank and the bourse in September last year, they said.
SGX also said that it will add RMB cash collateral to its list of acceptable margin collateral to facilitate more efficient settlement of RMB-denominated products. This allows for RMB to be used for all open positions maintained on SGX Derivatives Clearing, it said.
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