SGX and DCE join forces to promote commodity markets in China and Singapore
12 March 2014
Category: News, Asia, China, Global, Singapore
By Asia Asset Management
Singapore Exchange (SGX) and Dalian Commodity Exchange (DCE) have signed a memorandum of understanding (MOU) to collaborate on promoting greater understanding and exploring initiatives to help with the development of commodity markets in both China and Singapore. The two exchanges inked the MOU in Singapore on March 7.
The MOU will allow them to cooperate on areas including the development of new commodity derivatives products, joint commodity-related events, information sharing, training, and member and investor education in each other’s markets. Through the agreement, DCE and SGX aim to strengthen understanding of the markets and promote the bilateral relationship.
Liu Xinqiang, chairman of DCE said: “China is the world's major commodity producer and consumer. In recent years, the derivatives market has been steady and there have been rapid developments. Singapore is one of Asia Pacific’s and the world's major stock trading and derivatives trading centres; its open and free financial market and environment has attracted international investors. Both our markets complement each other and there is now the basis for further cooperation. This MOU with SGX will further consolidate and expand our ties with Asian derivatives markets, and promote DCE’s business innovation and international development.”
Magnus Böcker, CEO of SGX, added: “We are excited to partner DCE to enhance commodity offerings and infrastructure in Asia, particularly in the iron and steel industry. By synchronising our strengths, international customers can tap on the unique advantages and opportunities in China and the surrounding growth economies. This MOU supports our commitment to serving the needs of Asia as a gateway for commodities.”