(EnergyAsia, January 30, Wednesday) — Singapore Exchange Limited (SGX) said its SGX AsiaClear unit has cleared more than US$4.7 billion worth of oil and commodity trades last year while securing over 160 trading accounts.
This represents a more than 12-fold increase in value of trades cleared and more than doubling of counterparty network over 2006.
At a ceremony yesterday, SGX AsiaClear presented awards to its top over-the-counter (OTC) inter-dealer brokers and clearing members. The awards were presented by guest-of-honour, Mrs Lim Hwee Hua, Minister of State for Finance and Transport.
Benjamin Foo, SGX’s Head of Clearing, Commodities and AsiaClear, said:
“SGX AsiaClear registered strong growth in our first full year of operation in 2007, with a sharp increase in clearing activity and growth in counterparties. We will work more closely with market participants to introduce further initiatives to grow the OTC business in Asia.”
For 2008, SGX is looking to offer clearing services for petrochemical derivative trades and dry bulk commodities contracts.
SGX AsiaClear’s rapid development was recognised by the industry in the form of two awards last year.
SGX received the Exchange of the Year – Asia Award from Energy Risk magazine, in recognition of SGX AsiaClear’s contribution to the OTC energy derivatives market. SGX AsiaClear also received the Energy Business Award for Excellence in Energy Trading and Risk Management.
SGX AsiaClear is Asia’s first and only OTC clearing service for oil swaps and forward freight agreements (FFAs). With its growing pool of Asia-based trading counterparties, SGX AsiaClear is also beginning to see more interest from European players who are keen to trade with Asian partners.
It offers clearing services for OTC trades in fuel oil, gasoil and kerosene.