SGX AsiaClear to launch OTC benzene swaps

08 April 2008 05:05  [Source: ICIS news]

SINGAPORE (ICIS news)--SGX AsiaClear, the over-the-counter (OTC) trading arm of Singapore Exchange Ltd (SGX), will launch the clearing of OTC benzene swaps contracts on 5 May, the firm said late on Monday.

The prices would be based on the monthly average of Singapore’s daily benzene spot price quotations for the contract month, it added in a statement

Each benzene FOB (free on board) Korea swaps contract would be 500 tonnes, with all payments settled in cash, it said.

The new initiative complemented the existing OTC oil contract trading, and was in response to the market’s need to mitigate credit and trading risks, the company’s head of clearing, commodities and AsiaClear, Benjamin Foo said.

SGX AsiaClear, the continent’s first and only OTC clearing platform, was launched in May 2006 and offers OTC clearing platforms for energy and freight derivatives.

By: Serene Cheong
+65 6780 4359

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