SMX at a Glance
The Singapore Mercantile Exchange (SMX) is the first pan-Asian multi-product
commodity and currency derivatives exchange. Situated in Singapore, SMX offers a
comprehensive platform for trading a diversified basket of commodities including
futures and options contracts on precious metals, base metals, agriculture commodities,
energy, currencies and commodity indices.
Historically, markets have always been the true barometers for any economy. At present,
Asia is home to the majority of the world's population and will account for a major
portion of the total global demand for commodities in the coming years.
With a vision of a new generation derivatives exchange befitting an ever-evolving
marketplace, SMX has launched a single, smart and reliable platform for both international
and regional entities to trade a diverse range of multi-asset class products. Through
cutting edge electronic systems for trading futures and options, SMX is synchronising
derivatives and physical trading in commodities within the Asian time zone while
continuously listing new products for more effective risk management during Asian
trading hours.
SMX is backed by the world’s leading creator of exchanges - Financial Technologies (India) Limited - which has successfully established 10 exchanges across India, Dubai, Singapore, Africa, Mauritius and Bahrain.
The city-state of Singapore has a world-class financial and physical infrastructure.
Its proximity to many of the world's largest producers and consumers of multiple
commodities will enable price discovery based on regional demand and supply fundamentals.
Commodity prices set through trading on SMX may serve as benchmarks when western
markets open for trading. SMX is thus poised to enable Asia as a price-setter instead
of being a price-taker from western markets.
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| Benefits @ SMX |
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Market Transparency
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Price Risk Management |
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Trade transparency is consistent via the electronic matching of bids and offers
based on price-time priority. SMX uses advanced technology and systems specially
created for today's commodities and derivatives markets.
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Producers and traders of commodities can rely on SMX for a well-adjusted hedging
mechanism which matches their risk reduction needs. |
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Price Discovery
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Single Window For Multiple Products |
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Price discovery is more reflective of demand and supply fundamentals for commodities
consumed or produced in large quantities in Asia.
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SMX is an exchange based in one location but offering trading across multiple time
zones for multiple product types and derivative asset classes within the convenient
framework of a financial and technological hub. |
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Price Benchmarking
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Time Zone Convenience |
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Benchmarks for commodity prices are available for other global markets opening throughout
each day.
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SMX synchronises commodities trading and their related derivatives, vastly reducing
time gaps between physical and hedging activity. |
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Counterparty Guarantee
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Multiple Connectivity Options |
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Clearing and settlement of all SMX Contracts are guaranteed through a Central Counterparty
- the SMX Clearing Corporation (SMXCC) - which is governed by the regulator of Singapore's
financial markets, the Monetary Authority of Singapore (MAS).
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Access to the SMX trading platform is possible via leased lines, dial-up solutions,
multi-protocol label switching, the internet (either using SMX native front-end
solutions or front-ends developed by independent software vendors otherwise known
as ISVs), or directly through Members' own technology departments using financial
information exchange protocol (otherwise known as FIX). |
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