Jade starts trading in rubber futures

Source: Jade

Singapore Exchange and Chicago Board of Trade (CBOT®) (NYSE: BOT) are pleased to commence the first day of trade for the Joint Asian Derivatives Exchange (JADE) today. JADE, a market division of SGX Derivatives Trading Ltd, launches its debut in commodities futures trading with TSR 20 Rubber Futures Contract.

Commodities have increasingly become a key growth area for Asia. The formation of JADE was in response to demand from international customers for a more accessible and transparent platform to participate in Asia's booming but fragmented commodity markets. The superior functionality of the CBOT's e-cbot® electronic trading platform, coupled with SGX's globally recognized clearing system, enables JADE to offer customers access to a fair and transparent trading platform for price discovery. JADE is supported by a network of global clearing members, and its markets participants can also use SGX derivatives clearing house to clear their trade efficiently and cost-effectively.

"The launch of JADE and its first TSR 20 Rubber Futures Contract signifies an important milestone for SGX as we introduce a new commodity derivatives market for Asian based commodities. JADE offers market participants new trading opportunities in commodity derivatives through CBOT's global e-cbot electronic trading platform, and the reliable clearing infrastructure of SGX. Customers can look forward to improved efficiencies and faster time-to-market by trading and clearing through the JADE marketplace. We believe that JADE's presence and participation will contribute toward and reinforce the overall development of a dynamic commodity landscape in Asia," said Mr. Seck Wai Kwong, Senior Executive Vice President and Head of Strategy & Business Development of SGX.

CBOT President and CEO Bernard W. Dan said, "The CBOT and SGX share a common goal -- to launch an all-electronic, Asian-based commodity exchange that will create new trading opportunities for global market participants. Our customers have displayed a great deal of enthusiasm for the JADE product offering, particularly the secure connection offered by the CBOT's electronic trading platform, and SGX's clearing system. We believe JADE represents a new gateway to arbitrage opportunities in Asia and is a welcomed addition as a price risk management tool for commodities in the region."

JADE also announced that it has established three electronic market makers to provide liquidity and generate market activity for the Rubber contract.

By the end of 2006, following the launch of TSR 20 Rubber Futures Contract, JADE aims to introduce its next contract, crude palm oil (CPO). JADE will continue to explore and develop its next suite of Asian-based commodities which may include other agricultural products, metals and energy.

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