soon-to-be launched commodity exchange said yesterday
(Wednesday May 2) that it would offer the futures in US dollars
with a contract size of 1,000 barrels.
McMahon, CEO, said the oil product would be "the first step
towards establishing a broad base and multiple product facility
for energy hedging, trading and investing from
the first product that SMX has confirmed it will
said SMX had committed to offering WTI futures because of their
importance in the region. "As one of the benchmarks used within
the Asian business day, we see an opportunity to give the
trading community in the region a choice for efficient use of
collaterals in trading and clearing," he said.
listing WTI oil futures, SMX is taking on the market leader in
the product, the former New York Mercantile Exchange –
now part of CME Group. WTI futures are also traded in London at
the US-owned ICE Futures Europe, formerly the International
said that as the Asia Pacific region now rivalled the historic
commodity trading regions of the US and Europe, SMX hoped to
facilitate that demand with its own products.
widely accepted benchmark, we see the WTI as complementary to
our broader product mix that is specific to the region," the
SMX CEO said. "In 2009, 6.2bn futures and derivative contracts
were traded in Asia versus 6.3bn in other regions. Trading in
Asia has been increasing at a very fast pace and we expect to
see some of this flow coming to SMX. Our products have been
designed to meet the specific investing and hedging needs of
Asian trade flows with due consideration to trading during the
Asian time zone. This will reflect more accurate pricing for
the commodities in the region."
yet to reveal whether it will offer any other products when it
launches in August. It has been granted regulatory approval to
offer 11 contracts. But McMahon said the bourse had finalised
its product suite and would make announcements in the coming
exchange said that when it completes its product suite, it will
list about 30 products, including a "complete energy complex"
to allow for "hedging and investment across the entire energy
product supply chain".
Packham, Sydney email@example.com