Cbot and SGX to set up new Asian commodities exchange

Cbot and SGX to set up new Asian commodities exchange

The Chicago Board of Trade is partnering with the Singapore Exchange to launch a new electronic commodities market, dubbed Jade (Joint Asian Derivatives Exchange).

Cbot and SGX have formed a 50/50 joint venture company called the Joint Asian Derivatives Pte. Ltd. to develop the new market which is slated for launch in the third quarter next year. In the initial phase, the new exchange will be operated by Singapore Exchange Derivatives Trading Limited (SGX-DT) under its existing license granted by the Monetary Authority of Singapore (MAS).

Products developed by the venture partners will be hosted on the CBOT’s LiffeConnect electronic trading platform and cleared by SGX’s derivatives clearing house.

The two exchanges signed a memorandum of understanding in August this year to explore the development of futures and options-on-futures contracts on Asian-based commodities.

The Chicago exchange recently established a new telecomms hub in Singapore which will be used to provide a Jade gateway for Cbot clients.

CBOT president and CEO Bernie Dan comments: "Our agreement with SGX to build a premier electronic marketplace in this growing economy demonstrates our commitment to meeting the growing demand for liquid risk management tools in the Asian-Pacific region."

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