Good Start To Sing Dollar Interest Rate Future At SIMEX

The Singapore International Monetary Exchange (SIMEX) is pleased to announce a good start to its 3-Month Singapore Dollar Interest Rate Futures contract. Active trading on the first day chalked up a total of 1,517 contracts for all the contract months listed. Officiating at the launching ceremony on September 10 as Guests-of-Honour were Mr Wee Ee Cheong, Alternate Chairman of the Association of Banks In Singapore; and Ms Jeanette Wong, Chairman of the Singapore Foreign Exchange Market Committee. SIMEX's newest short-term interest rate futures contract is based on the 3-Month US Dollar/Singapore Dollar Swap Offered Rate ("USD/SGD SOR"). The USD/SGD SOR represents the cost of borrowing Singapore Dollars synthetically by borrowing US Dollars for the same maturity, and swapping out the US Dollars in return for the Singapore Dollars. The introduction of the 3-month Singapore Dollar Interest Rate Futures contract was prompted by favourable feedback from potential market participants, on the demand for a short-term interest rate futures contract based on the Singapore Dollar. It is also in line with SIMEX's objective to provide market-users with a comprehensive range of equity and interest rate products. The Exchange expects the new contract to grow steadily over time, in step with the progressive development of the Singapore Dollar capital markets. The contract is based on the USD/SGD SOR, computed by the Association of Banks in Singapore ("ABS"). USD/SGD SOR is computed on a 365-day basis, fixed daily at 11.00 a.m. Singapore time. Trading hours are from 8:45 a.m. to 5:00 p.m.