Singapore Exchange Ltd. will create derivative trading hubs in London and Chicago, and offer MSCI Indonesia futures as it steps up efforts to become the bourse of choice for Asian trading.
The exchange also agreed with Eurex to put their offshore servers into each other’s data centers for faster access, according to a statement. NYSE Technologies, an arm of NYSE Euronext, has also placed servers in Singapore’s co-location center. The bourse said it will also offer a real-time India Nifty futures index through Standard & Poor’s.
Bourses are looking for ways other than acquisitions to expand their businesses after more than $37 billion in proposed exchange mergers failed since October 2010, according to data compiled by Bloomberg. The Australian government in April rejected a bid by Singapore Exchange for ASX Ltd., saying the deal was not in the national interest.
Singapore Exchange rose 2.2 percent to close at S$7.05 in Singapore today. The stock has gained 15 percent this year.
The hubs in Chicago and London will be the first of their kind for an Asian exchange and will open in April after risk mechanisms meet Futures Industry Association standards, SGX said. Investors will only be able to trade Singapore-listed derivatives until pre-trade risk controls are extended to cover other securities, Tinku Gupta, head of market data and access, said via e-mail today.
Hong Kong and Tokyo may be two more potential hub sites, SGX Chief Executive Officer Magnus Bocker said in a statement.
The bourse will begin offering MSCI Indonesia Index futures in the second quarter of this year. These would be the first offshore futures on an Indonesian benchmark.