ASX and SGX forge derivatives trading link
Securities Exchange (ASX) and the Singapore Exchange (SGX) have established a
new connectivity arrangement following the failure of their attempted merger
Each bourse will
establish a presence in the other’s co-location data centre.
SGX will host
ASX’s hub from September, letting customers located at the Singapore market’s
co-location centre trade directly on the ASX 24 futures market based in
provides direct connectivity to its market from Chicago, New York, London and
Hong Kong, and already has an existing hub in Singapore. About 6% of ASX 24
futures and options volume is generated from its international hub network.
The next stage
of the agreement will let ASX members located in the exchange’s Australian
Liquidity Centre connect directly to SGX’s derivatives segment, which is the
only international venue to offer Chinese and Indonesia futures contracts.
SGX-ASX partnership enables both exchanges' customers to easily leverage the
strengths of the Australian and Singapore derivatives markets,” said Muthukrishnan
Ramaswami, president, SGX. “As the Asian Gateway, SGX is delighted to enable
easier and more cost effective connectivity offerings at a time when investors
are increasingly using exchange-traded derivatives to manage risks in the
various global marketplaces."
establishment of an ASX futures hub in the SGX facility bolsters the global
distribution network for ASX 24, connecting more customers into the Australian
market and enhancing our presence in Asia,” added Peter Hiom, deputy CEO at
merger between the ASX and SGX, which at the time would have created the
fifth-largest bourse in the world by market capitalisation, was thwarted by
Australian Treasurer Wayne Swan in April last year because of national interest
issues. The SGX is rumoured to be exploring a tie-up with the London Stock
Exchange after they signed an agreement on 11 July that would allow members of both
to trade stocks on both markets from one location.