Singapore Exchange's new role in clearing OTC trades

摘要

Despite its advantageous position,Singapore's attempts to launch its own exchange-operated oil futures contracts have gone nowhere since the arrival of the paper oil trade in Asia in the late 1980s.The first futures contract for fuel oil had modest success but eventually collapsed in the mid-1990s.Subsequent attempts at starting other contracts have also failed to excite the oil trading community which has settled on using over-the-counter instruments to hedge their positions.While hopes for a viable exchange contract live on,the Singapore Exchange (SGX) is also putting some of its money on a new service to guarantee and clear over-the-counter trades.For a start,SGX officials tell EnergyAsia the OTC service will target oil and freights,and possibly commodities in the future.