ICAP’s EBS and SGX collaborate on Asian FX futures

ICAP (LON:IAP), a leading markets operator and provider of post trade risk mitigation and information services, and Singapore Exchange (SGX), one of Asia’s leading exchanges and clearinghouses, announce today a strategic partnership to boost the growing Asian currency market. EBS, ICAP’s market-leading electronic foreign exchange (FX) business, and SGX will collaborate and develop a new range of Asian currency products and services that complement the FX OTC and futures markets in Asia.

The collaboration between SGX and EBS will strengthen the liquidity in both the FX OTC and futures markets in Asia. Together EBS and SGX will develop new business opportunities and product offerings leveraging each of their unique assets, market presence and relationships throughout Asia.

Magnus Böcker, CEO of SGX, said: “We are pleased to have ICAP as our strategic partner when we expand our FX services to customers seeking growth opportunities in Asia. This collaboration plays to SGX’s forte and position as the leading FX exchange for Asian currencies in both OTC and futures markets. We look forward to working closely with ICAP to push new frontiers in the Asian FX markets.”

EBS and SGX will initially offer customers access to SGX listed currency derivatives via the EBS platforms, to be cleared by SGX. Through this collaboration, customers will be able to execute and clear selected SGX Asian FX Futures contracts in specific large sizes called Negotiated Large Trades. Subject to respective regulatory approvals, EBS and SGX plan to implement this initiative in the third quarter of 2015.  EBS is also exploring the opportunity to establish an additional matching engine in Singapore, to be located in an SGX hosted facility, which would facilitate the execution of joint business opportunities and product offerings.

SGX has introduced a total of eleven FX Futures contracts such as the SGX Indian Rupee (INR/USD) futures launched in November 2013 and the SGX Chinese Renminbi (USD/CNH and CNY/USD) futures which was listed more recently in October 2014.  SGX has successfully traded more than US$26 billion in aggregate notional value since launch.  Over and above its Asian FX futures, SGX is the first central counterparty in this region to clear over-the-counter non-deliverable FX forwards in seven Asian currencies, and interest rate swaps.

EBS provides access to exceptional spot FX liquidity and reference prices via its leading trading venues EBS Market and EBS Direct. Having pioneered electronic trading in Asian NDFs, EBS supports the ongoing development of this market, with consistent volume growth seen on its platforms.

Michael Spencer, Group Chief Executive Officer of ICAP, said: “Our strategic collaboration with SGX is an exciting development which combines our highly successful EBS offering with the futures capability of SGX. It also strengthens ICAP’s commitment to Singapore, a leading player in the Asian financial markets, and the third largest FX centre in the world.”

To view the official release, click here.

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