Singapore, Dalian exchanges to collaborate on commodity trading

Published: 10:43 PM, March 10, 2014

SINGAPORE – The Singapore Exchange (SGX) and China’s Dalian Commodity Exchange have signed an agreement to collaborate on developing their commodities businesses, the Singapore bourse said on Monday.

The memorandum of understanding between the two exchanges will allow them to work together on developing commodity derivatives products and investor education, among other areas.

SGX Chief Executive Magnus Bocker said they would focus in particular on the iron and steel markets. Iron ore accounted for 90 per cent of all commodities derivatives cleared by the Southeast Asian exchange in 2013.

“By synchronising our strengths, international customers can tap on the unique advantages and opportunities in China and the surrounding growth economies,” Mr Bocker said in a statement.

The Dalian Commodity Exchange, located in northern China, received regulatory approval last September to launch China’s first iron ore futures.

The tie-up is the latest push by SGX to try and gain a stronger foothold in the Chinese market.

In December it signed an agreement with the China Futures Association to develop derivatives markets together, and in November it announced an agreement with the China Securities Regulatory Commission that would allow Chinese companies to list directly in Singapore. REUTERS