Mr Hsieh Fu Hua, CEO of SGX said, "We are happy to embark on this new business opportunity that can leverage on our well-established clearing infrastructure and generate additional sources of revenue. The introduction of an OTC clearing facility would mitigate the counterparty risks thereby strengthening the marketplace."
"We are very pleased that SGX is taking the lead in developing and implementing an OTC clearing facility for energy derivatives. We hope that this will serve as additional financial infrastructure to support and encourage more international trading activities, and thereby further boost Singapore's role as a major energy trading hub." said Mr Lee Yi Shyan, CEO, International Enterprise Singapore
BG Tay Lim Heng, Chief Executive of Maritime and Port Authority of Singapore ("MPA") said, "SGX's decision to develop an OTC clearing facility for FFAs would undoubtedly give a strong boost to the growing freight derivatives market in Asia. MPA welcomes and supports this initiative, which will augment Singapore's position as an international maritime centre."
The provision of a central clearing facility in clearing energy derivatives and FFAs would allow market participants to benefit from reduced costs and capital requirements. This would enable more Asian players to participate in these markets and grow volume and liquidity.
