SGX, SHFE agree on collaboration of commodity derivatives

Singapore Exchange (SGX) inked a memorandum of understanding (MoU) with the Shanghai Futures Exchange last Saturday on cooperation in development of the derivatives markets in both China and Singapore, SGX said on Monday.

According to the SGX's statement, the two exchanges will jointly explore cooperation in the development of derivatives for energy, metal, chemical and commodity indexes.

Besides, the MoU also covers exchange of ideas and information sharing.

Liu Nengyuan, President and CEO of Shanghai Futures Exchange, said the cooperation will "increase market efficiency, and promote the development of the derivatives markets and the economies of both China and Singapore."

He also looks forward to mutual benefits in areas such as information exchange, experience sharing and engagement between the two sides' executives.

Magnus Bocker, the CEO of SGX, said Shanghai Futures Exchange can leverage SGX's connectivity and infrastructure to reach out to international participants.

"This partnership marks the start of an exciting journey and further boosts SGX's long-term commitment to China," he added.