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Singapore Exchange Limited To Launch Middle East Crude Oil Futures On 12 November 2002

Date 24/10/2002

Singapore Exchange Limited (SGX) and International Enterprise (IE) Singapore today announced that the US$-denominated SGX Middle East Crude Oil (MECO) Futures contract will be launched for trading on the SGX Electronic Trading System (SGX ETS) at 11.30 am on 12 November 2002.

The contract's final settlement is based on the Monthly Average of the Daily Dubai and Oman crude oil prices assessed by Platts, a unit of McGraw-Hill Companies, Inc. The SGX MECO Futures contract is being launched in cooperation with the Tokyo Commodity Exchange (TOCOM), which has been successfully trading a similar Yen-denominated Middle East Crude Oil futures contract since 10 September 2001.

SGX and TOCOM have both entered into a licensing agreement with Platts, to use Platts' assessments for the purpose of settling their respective Middle East Crude Oil futures contracts. The SGX MECO Futures contract will complement the similar contract traded in TOCOM and the vibrant OTC oil market in Singapore and the Asia-Pacific as an efficient and credible tool for trading and risk management. It also reduces concerns on counterparty risks in the oil market as the contract is cleared and guaranteed by the exchange.

The SGX MECO Futures contract is supported by IE Singapore, which administers the Global Trader Program (GTP). Under the GTP and its predecessor, the Approved Oil Trader (AOT) programs, over 40 international oil trading companies have chosen to conduct their trading activities out of Singapore. The introduction of the MECO Futures Contract is a positive step towards enhancing Singapore's holistic trading infrastructure for the oil trading sector as it offers an additional trading and risk management tool.

Mr Lee Yi Shyan, CEO of IE Singapore, said, "IE Singapore welcomes and supports this initiative as it will provide the oil community here with an additional trading and risk management tool to hedge against their exposures amid increasing uncertainties and volatility in oil prices. The establishment of a successful oil futures contract would further enhance Singapore's position as a major oil trading and financial hub."

Mr Ang Swee Tian, President of SGX, said, "We are pleased to implement our cooperation arrangement with TOCOM to offer the MECO Futures contract. We look forward to developing the contract into a successful international trading and risk management tool, and we hope that it will become a benchmark for regional and international oil participants to trade and hedge their exposure during the Asian, Middle Eastern and early European business hours."

Many oil market participants in Singapore and other countries have expressed interest in using the SGX MECO Futures contract. They include oil refiners, traders and financial institutions. It is expected that this contract will also attract the participation of over 80 SGX Locals (Individual Members of SGX Derivatives Trading) who trade on the SGX ETS.

Trading hours for the SGX MECO Futures contract will be from 8.00 am to 7.00 pm on normal trading days and from 8.00 am to 5.30 pm (Singapore time) on the Last Trading Day (last business day of the contract month). The size of each contract is 1,000 barrels. Six consecutive contract months, starting with the December 2002 contract, will be listed for trading on 12 November 2002.

Trading will be directly accessible globally on the internet and on electronic trading systems provided by SGX Corporate Members via their in-house systems or Independent Software Vendors such as Bloomberg, Easyscreen, GL Trade, Nyfix and Patsystems, as well as through SGX ETS terminals.