London and Singapore to tie up for metals futures
The London Metal Exchange (LME) and Singapore Exchange (SGX) said Thursday they would launch three metals futures contracts on the SGX in February to provide more trading options for Asian investors.
"For the first time ever, SGX members and customers will be able to gain exposure to the price of base metals via SGX's platform," Singapore Exchange chief executive Magnus Bocker said in a statement.
"I am confident that this joint initiative will bring greater vibrancy to the metals market in Singapore and benefit Asia."
Copper, aluminium and zinc futures are due to be launched on February 15, with lead, steel, tin and nickel to follow.
The contracts, which will mirror the specifications of the LME's mini contracts of five-tonne instead of the standard 25-tonne lots, will be traded and cleared exclusively on SGX.
Settlement at expiration will be based on the LME's official cash settlement prices.
"Investors in Asia clearly value the integrity of LME prices but have told us they want new ways to trade LME metals," said LME chief executive Martin Abbott.
© 2010 AFP