The Singapore Exchange (SGX) today announced that SGX AsiaClear® will offer the clearing of OTC Balance-of-Month (BOM) Gasoil Swaps Contracts from 2 March 2007. This brings the number of BOM contracts listed for clearing to three, following SGX AsiaClear®’s BOM Fuel Oil 180 cst and 380 cst Contracts listed in September 06. SGX AsiaClear® is the first in Asia to offer OTC Balance-of-Month clearing for oil swaps contracts.
The new Gasoil contract is introduced in response to feedback from market participants, and to address the need for such an offering in the Asian marketplace. The positive response to SGX AsiaClear®’s existing BOM Fuel Oil 180 cst and Fuel Oil 380 cst contracts is also an indication of the increasing demand for BOM contracts by the industry.
BOM Gasoil Swaps are traded as individual day contracts in the current month. The final settlement of these contracts are derived from the arithmetic average of Platts’ daily spot assessment prices from the contract date till the last business day of the contract month.
On each Business Day, two BOM Contracts comprising the current Business Day Contract and the next Business Day Contract for Gasoil will be listed for clearing. The following contracts will be listed on 2 March 07 when SGX clearing of BOM Gasoil Swap commences:
2 March 07 Balance-of-Month Gasoil Contract
5 March 07 Balance-of-Month Gasoil Contract
