SINGAPORE: Singapore paved the way for a third derivatives exchange in the city, a month after Deutsche Boerse AG called quits on its ambition for a futures venue in the Asian nation.
Asia Pacific Exchange Pte Ltd (Apex), backed by Chinese investors, had received licences from the Monetary Authority of Singapore (MAS) to operate a derivatives exchange and clearinghouse, chief executive officer Eugene Zhu said in an interview.
Apex, which has more than 60 employees, is scheduled to open in May with refined palm oil contracts, he said. Intercontinental Exchange Inc and Singapore Exchange Ltd already run derivatives bourses in the city.
A Chinese-backed offshore venue would dovetail with the mainland government’s drive to lift the country’s status in global financial markets.
The Shenzhen and Shanghai stock exchanges have offered to buy a 25% stake in the Dhaka Stock Exchange, and in 2016 teamed up with others to acquire 40% of the Pakistan Stock Exchange.
“We’re not here to compete but here to complement Singapore Exchange, Intercontinental Exchange and Bursa Malaysia,” said Zhu. “Singapore should be a centre for commodities price benchmarks.”
Apex is studying products including natural rubber, South American soybean, iron ore, crude oil and financial futures, Zhu said.
Zhu formerly headed the Dalian Commodity Exchange as well as the China Financial Futures Exchange, and has also served as president of Shanghai Pudong Development Bank. — Bloomberg
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